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# Yield to maturity Assume the market price of a 5 year bond for Margaret Inc is \$900 and it has a par value of \$1000 The bond has an annual interest rate of 6 percent that is paid semiannually

(Yield to maturity) Assume the market price of a 5-year bond for Margaret, Inc. is \$900, and it has a par value of \$1,000. The bond has an annual interest rate of 6 percent that is paid semiannually. What is the yield to maturity of the bond?

2. (Current yield) Assume you have a bond with a semiannual interest payment of \$35, a par value of \$1,000, and a current market of \$780. What is the current yield of the bond?

2. (Yield to maturity) An 8-year bond for Rusk Corporation has a market price of \$700 and a par value of \$1,000. If the bond has an annual interest rate of 6 percent, but pays interest semiannually, what is the bond’s yield to maturity?

Apr 27 2020 View more View Less

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