d5b9b40c64fda17a4bcd6d0dff377fb2_813915b8c4c8a3e42fa014e9a1219089 - Mary wants to invest her recent bonus in an 12-year 8 percent coupon bond that pays

D5b9b40c64fda17a4bcd6d0dff377fb2_813915b8c4c8a3e42fa014e9a1219089

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Mary wants to invest her recent bonus in an 12-year, 8 percent coupon bond that pays semiannual coupon payments. The bonds are selling at $1,043.24 today. If she buys this bond and holds it to maturity, what would be her yield-to-maturity? 7.45% YTM = rate (nper, pmt, pv, fv)*2 YTM = rate (12*2, 40, -1043.24, 1000) * 2 YTM = 7.45% Sea Masters Co. issued $1000 par value bonds with a 12 percent coupon. The bond pays interest
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Unformatted text preview: semi-annually and has 16 years remaining to its maturity date. If the market demands 9.0 percent required rate on the bond, what is the price of the bond? Round it two decimial places, and do not include the $ sign, e.g., 935.67. Answer: (1,251.83)...
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