Question

(Related to Checkpoint 9.2) (Yield to maturity) The market price is $1,150 for a 17-year bond ($1,000 par value) that pays 8 percent annual interest, but makes interest payments on a semiannual basis (4 percent semiannually). What is the bond's yield to maturity? The bond's yield to maturity is %. (Round to two decimal places.)

Answer 1

You don’t have to round the ratio just because someone tells you too!