Find the yield to maturity for a ten-year

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Problem 1: Find the yield to maturity (YTM) for a 10-year, 8% annual coupon rate, $1,000 par value bond if the bond sells at the par value? We assume that interest is paid on this bond annually.

Option 1: 5.88%

Option 2: 6.91%

Option 3: 7.52%

Option 4: 8.00%

Problem 2: Using the information from the previous question, calculate the bond's current yield.

Option 1: 6.00%

Option 2: 8.00%

Option 3: 10.00%

Option 4: 8.21%

Problem 3: Using the information from the previous question, calculate the bond's capital gain yield.

Option 1: -0.35%

Option 2: -1.27%

Option 3: 0.35%

Option 4: 0%

Reference no: EM132819127

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