Bonita Limited has bonds outstanding that will mature in 6 years. The bonds have a face value of $1,000. The bonds pay interest semi-annually and have a coupon rate of 4.6 percent. If the bonds are currently selling at $899.68.
What is the yield to maturity that an investor who buys them today can expect to earn? (Round answer to 1 decimal place, e.g. 5.2%.)
Yield to maturity% __________________
What is the effective annual yield? (Round answer to 2 decimal places, e.g. 5.27%.)
Effective annual yield% __________________
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
SOLVED WITH BA II PLUS FINANCIAL CALCULATOR
Get Answers For Free
Most questions answered within 1 hours.