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What is the yield to maturity of a corporate bond

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Reference no: EM133116166

1. What is the yield to maturity of a corporate bond with 13 years to maturity, a coupon rate of 8% per year, a $1,000 par value, and a current market price of $1,250? Assume semiannual coupon payments.

 

  1. 5.3%
  2. 4.2%
  3. 4.7%
  4. 6%

 

2. What is the yield to maturity of a bond that pays an 5% coupon rate with annual coupon payments, has a par value of $1,000, matures in 15 years, and is currently selling for $769?

 

  1. 7.6%
  2. 5.7%
  3. 2.4%
  4. 9.5%

Reference no: EM133116166

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