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Ruth Hornsby is looking to invest in a three-year bond that makes semiannual coupon payments at...

Ruth Hornsby is looking to invest in a three-year bond that makes semiannual coupon payments at a rate of 17.32 percent. If these bonds have a market price of $980.57, what yield to maturity and effective annual yield can she expect to earn? (Round answer to 2 decimal places, e.g. 15.25%.)

Yield to maturity %
Effective annual yield %
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Answer #1
Calculator
Inputs:
PV                  (980.570)
PMT                          86.6
FV                   1,000.00
N                                6
Output:
I/Y = IRR 9.0944%
Yield to maturity 18.19%
Annual eff rate 19.02%

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