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A 10-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate of 7%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond
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A 10-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate of 7%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices. (Round your answers to 2 decimal places.)

Bond Prices Bond Equivalent Annual Yield to Maturity Effective Annual Yield to Maturity
a. $ 940 _____ % ________ %
b. $ 1,000 _____ % ________ %
c. $ 1,040 % _____ % ________ %

User Chadoh
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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

A 10-year maturity bond with par value of $1,000 makes semiannual coupon payments-example-1
User Neodawn
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