A 30-year maturity bond with face value of $1.000 makes annual coupon payments a

Question

A 30-year maturity bond with face value of $1.000 makes annual coupon payments and has a coupon rate of 10%. a. What is the bond's yield to maturity if the bond is selling for $970? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to maturity b. What is the bond's yield to maturity if the bond is selling for $1,000? c. What is the bond's yield to maturity if the bond is selling for $11702 (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to maturity

Explanation / Answer

Excel function:  =RATE(30,100,-R18,1000) where cell reference is for price of bond

Price YTM a $    970.00 10.327% b $ 1,000.00 10.000% c $ 1,170.00 8.428%

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