What is yield to maturity

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1. There is a zero coupon bond that sells for $4,432.06 and has a par value of $10,000. If the bond has 23 years to maturity, what is the yield to maturity? Assume semiannual compounding.

2. Harpeth Valley Water District has a bond outstanding with a coupon rate of 4.51 percent and semiannual payments. The bond matures in 16 years, with a yield to maturity of 3.85 percent, and a par value of $5,000. What is the market price of the bond?

Reference no: EM131980517

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