Question

# Calculate the yield to maturity on the following bonds. a. A 8.6 percent coupon (paid semiannually)...

 Calculate the yield to maturity on the following bonds.

 a. A 8.6 percent coupon (paid semiannually) bond, with a \$1,000 face value and 10 years remaining to maturity. The bond is selling at \$915. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

 Yield to maturity % per year

 b. An 5.7 percent coupon (paid quarterly) bond, with a \$1,000 face value and 10 years remaining to maturity. The bond is selling at \$911. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

 Yield to maturity % per year

 c. An 7.7 percent coupon (paid annually) bond, with a \$1,000 face value and 8 years remaining to maturity. The bond is selling at \$1,061. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

 Yield to maturity % per year

 Using financial calculator BA II Plus - Input details: a b c FV = Face value = -\$1,000.00 -\$1,000.00 -\$1,000.00 PV = Bond price = \$915.00 \$911.00 \$1,061.00 PMT = Coupon/frequency = -\$43.00 -\$14.25 -\$77.00 N = Years to mature x frequency = 20.00 40.00 8.00 CPT > I/Y = Rate = 4.9810 1.7354 6.6907 Yield to Maturity = Rate * Frequency /100 = 9.962% 6.942% 6.691%