A.Zero Coupon Bonds A 7 year maturity zero coupon corporate bond has an 8% promised yield. The bond's price should equal

C.Bond Yields Find the promised yield to maturity for a 7% coupon, $1,000 par 20 year bond selling at $1115.00. The bond makes semiannual coupon payments.
SOLUTION :
A.
Let us assume face value of bod = 100($)
So, price of bond = 100/(1 + 0.08)^7 = 58.35 ( % of face value)
Bond price is quoted as % of face value.
B.
Use online calculator for YTM : ref. https://dqydj.com/bondyieldtomaturitycalculator/
Enter :
Current price ($) = 1027
Face value ($) = 1000
Years to maturity = 12
Coupon rate (%) = 6.40
Coupon payments frequency = 2
Press compute , we get YTM = 6.080 % (ANSWER).
C
Use online calculator for YTM : ref. https://dqydj.com/bondyieldtomaturitycalculator/
Enter :
Current price ($) = 1115
Face value ($) = 1000
Years to maturity = 20
Coupon rate (%) = 7
Coupon payments frequency = 2
Press compute , we get YTM = 6.005 % (ANSWER).
A.Zero Coupon Bonds A 7 year maturity zero coupon corporate bond has an 8% promised yield....
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