Compute the annual yield to maturity

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Reference no: EM132028920

1. Compute the annual yield to maturity (YTM) for a 1,000 par value 7% coupon bond that is currently priced at 800 with 10 years to maturity. Assume semiannaul coupon payments.

10.24

5.12

10.30

2. Compute the current value of a 1,000 par value 8% coupon bond with 10 years to maturity assuming semiannual coupon payments and a market return of 10%.

877.11

1,000

1,373.87

875.38

Reference no: EM132028920

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