pofchapter6 - D= 12.81% E= 8.95% b. The yield to maturity...

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Chris Bergman Principles of Finance SECTION 25049 OPC 004 October 20, 2008 christopherbergman@g.austincc.edu Chapter 6 4) Security A Security B R f = 11% R f = 9% RP= 3% RP= 6% Nominal rate= 14% Nominal rate= 15% 7) PMT= $70 FV= $5000 n= 5 i= 6 maximum value= $8791.18 15) A is Discount B is Par C is Premium D is Discount E is Premium 17) A= 12.71% B= 12.00% C= 10.22%
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Unformatted text preview: D= 12.81% E= 8.95% b. The yield to maturity on a bond with a current price equal to its par value will always equal the coupon interest rate. When the bond value differs from par, the yield to maturity will differ from the coupon interest rate. 18) n= 12 i= 14% PMT= $50 FV= 1,000 PV= $841.15...
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