Bond equivalent and effective annual yield to maturity

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Reference no: EM131903141

A 10-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 5%.

a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $950. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.)

Bond equivalent yield to maturity % _______________

Effective annual yield to maturity % _______________

b. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $1,000. (Do not round intermediate calculations.Round your answers to 2 decimal places.) Bond equivalent yield to maturity % _______________

Effective annual yield to maturity % _______________

c. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $1,050. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.)

Bond equivalent yield to maturity % _______________

Effective annual yield to maturity % _______________

Reference no: EM131903141

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