Find the yield rate over the ten-year period

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1. A 9.5 percent semiannual coupon bond matures in 10 years. The bond has a face value of $1,000 and a current yield of 9.99 percent. What is the bond's yield to maturity?

2. A loan of $12,000 is being repaid with payments of $1,500 at the end of each year for 10 years. These payments can earn interest at an effective rate of 6% per annum. At the end of the year, this interest is reinvested at the annual effective rate 5% for the first 6 years and only 4% for the second 4 years. Find the yield rate over the 10-year period.

Reference no: EM131890963

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