@ Do Homework-dustin jones xe.nd. Bond Prices Price T Chapter& Bonds and Bond Va

Question

@ Do Homework-dustin jones xe.nd. Bond Prices Price T Chapter& Bonds and Bond Va Chttps//www.mathvd.com/Student/PlayerHomework aspthomeworkld-50013654 Fi 302 Fall 2018 Hybrid Section Homework: Chapter 6 Homework Score: 0 of 1 pt P6-5 (similar to) Yield to maturity. What is the yield of each of the following bonds if interest (coupon) is paid annually? Years to Maturity Yield to Maturity Par Value $1,00000 $1,000 00 $5,00000 $1,000.00 Price $800.00 $1,400.00 $10,300.00 $800.00 Coupon Rate 11% 12% 6% 30 30 a. What is the yield of the following bond if interest (coupon) is paid annually? (Round to two decimal places) Years to Yield to Maturity Par Value Coupon Rate Maturity $1,000.00 Price 7% $800.00 Enter your answer in the answer box and then click Check Answer Do Homework - du.

Explanation / Answer

Solution:

Par value

Coupon rate

Years to maturity

Yield to maturity

Price

$1,000.00

7%

5

12.64%

$800.00

$1,000.00

11%

30

7.59%

$1,400.00

$5,000.00

12%

30

5.06%

$10,300.00

$1,000.00

6%

5

11.48%

$800.00

Working

Using financial calculator BA II Plus - Input details:

FV

PMT

N

PV

CPT > I/Y

-$1,000.00

-$70.00

5

$800.00

12.64

-$1,000.00

-$110.00

30

$1,400.00

7.59

-$5,000.00

-$600.00

30

$10,300.00

5.06

-$1,000.00

-$60.00

5

$800.00

11.48

Par value

Coupon rate

Years to maturity

Yield to maturity

Price

$1,000.00

7%

5

12.64%

$800.00

$1,000.00

11%

30

7.59%

$1,400.00

$5,000.00

12%

30

5.06%

$10,300.00

$1,000.00

6%

5

11.48%

$800.00

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