What is the bonds yield to maturity

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Reference no: EM131949270

1. A coupon-paying bond has a current price of $945. Its face value is $1,000. Its $70 coupon is paid just once per year (at the end of each year). There are 2 years left until maturity. What is the bonds yield to maturity? (to the nearest tenth of a percent)

a. 4.6%

b. 2.9%

c. 7.0%

d. 10.2%

2. A bond has three years to maturity. Its coupon rate is 6% and it pays just once per year. Its face value is $1,000. At its yield to maturity of 5%, it is priced at $1,041. Compute the duration of this bond.

a. 1.9

b. 3.7

c. 3.0

d. 2.8

Please show the process

Reference no: EM131949270

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