Match the yield to maturity to each of these bonds. Each pays interest semi-annu
ID: 2801701 • Letter: M
Question
Match the yield to maturity to each of these bonds. Each pays interest semi-annually.
What is the yield to maturity for a $1,000 par value bond with 7 years to maturity that has a coupon rate of 4.5% and currently sells for $891.53?
What is the yield to maturity for a $1,000 par value bond with 4 years to maturity that has a coupon rate of 4.5% and currently sells for $925.23?
What is the yield to maturity for a $1,000 par value bond with 3 years to maturity that has a coupon rate of 6.0% and currently sells for $976.51?
What is the yield to maturity for a $1,000 par value bond with 11 years to maturity that has a coupon rate of 5.5% and currently sells for $956.28?
What is the yield to maturity for a $1,000 par value bond with 9 years to maturity that has a coupon rate of 5.9% and currently sells for $975.51?
6.05%
6.45%
6.88%
6.66%
6.26%
What is the yield to maturity for a $1,000 par value bond with 7 years to maturity that has a coupon rate of 4.5% and currently sells for $891.53?
What is the yield to maturity for a $1,000 par value bond with 4 years to maturity that has a coupon rate of 4.5% and currently sells for $925.23?
What is the yield to maturity for a $1,000 par value bond with 3 years to maturity that has a coupon rate of 6.0% and currently sells for $976.51?
What is the yield to maturity for a $1,000 par value bond with 11 years to maturity that has a coupon rate of 5.5% and currently sells for $956.28?
What is the yield to maturity for a $1,000 par value bond with 9 years to maturity that has a coupon rate of 5.9% and currently sells for $975.51?
A.6.05%
B.6.45%
C.6.88%
D.6.66%
E.6.26%
Explanation / Answer
What is the yield to maturity for a $1,000 par value bond with 7 years to maturity that has a coupon rate of 4.5% and currently sells for $891.53? YTM =RATE(nper,pmt,pv,fv) =RATE(14,22.5,-891.53,1000)*2 = 6.45% (Option B)
What is the yield to maturity for a $1,000 par value bond with 4 years to maturity that has a coupon rate of 4.5% and currently sells for $925.23? =RATE(8,22.5,-925.23,1000)*2 = 6.66% (Option D)
What is the yield to maturity for a $1,000 par value bond with 3 years to maturity that has a coupon rate of 6.0% and currently sells for $976.51? =RATE(6,30,-976.51,1000)*2 = 6.88% (Option C)
What is the yield to maturity for a $1,000 par value bond with 11 years to maturity that has a coupon rate of 5.5% and currently sells for $956.28? =RATE(22,27.5,-956.28,1000)*2 =6.05% (Option A)
What is the yield to maturity for a $1,000 par value bond with 9 years to maturity that has a coupon rate of 5.9% and currently sells for $975.51? =RATE(18,29.5,-975.51,1000)*2 = 6.26% (Option E)