Question

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			%

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%

please rate.