What is the bond yield to maturity

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1. The market price is $ 1,050 for a 16-year bond (1,000 par value) that pays 11percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity?

2. Doisneau 24-year bonds have an annual coupon interest of 9 percent, make interest payments on a semiannual basis, and have a $1,000 par value. If a bond are trading with a market's required yield to maturity of 12 percent, are these premium or discounted bonds? What is the price of the bonds?

Reference no: EM132557284

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