Castor owns one bond a and one bond b the total value of


Question: Castor owns one bond A and one bond B. The total value of these two bonds is 1,932.89 dollars. Bond A pays semi-annual coupons, matures in 13 years, has a face value of 1,000 dollars, and pays its next coupon in 6 months. Bond B pays annual coupons, matures in 16 years, has a face value of 1,000 dollars, has a yield-to-maturity of 10.34 percent, and pays its next coupon in one year. Both bonds have a coupon rate of 7.12 percent. What is the yield-to-maturity for bond A? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

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Finance Basics: Castor owns one bond a and one bond b the total value of
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