Coupon bond-what is the bond yield to maturity

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1. Consider a coupon bond that has a par value of $900 and a coupon rate of 6%. The bond is currently selling for $908.31 and has a 2 year maturity. What is the bond's yield to maturity (YTM)? Round your response to one decimmal place.

2. You are in a car? accident, and you receive an insurance settlement of ?$3500 per year for the next three years. The first payment is to be received today. The second payment is to be received one year from? today, and the third payment two years from today. If the interest rate is 5?%, the present value of the insurance settlement is ____. (Round your response to the nearest two decimal? place)

Reference no: EM131973098

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