13.) A bond has an annual 8 percent coupon rate, a maturity of 10 years, a face value ofST000 and makes semi-annual pavments If the price is $934.96, what is the annualnominal yield to maturity?

Yield to maturity (YTM) is the total rate of return received by a bond after it has made all…

Answered: A bond has an annual 8 percent coupon…

A bond has an annual 8 percent coupon rate, a maturity of 10 years, a face value of STO00 and makes semi-annual pavments If the price is $934.96, what is the annual nominal yield to maturity?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 4MC

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

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13.) A bond has an annual 8 percent coupon rate, a maturity of 10 years, a face value of
ST000 and makes semi-annual pavments If the price is $934.96, what is the annual
nominal yield to maturity?

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A bond has an annual 8 percent coupon rate, a maturity of 10 years, a face value of $1000 and makes semi-annual payments. If the price is $934.96, what is the annual nominal yield to maturity?