Find the yield to maturity


Problem:

A bond has a $1,000 par value, 20 years to maturity, a 6.5% semiannual coupon, and sells for $1,037.25.

Required:

Question 1: Find the yield to maturity.

Question 2: Find the current yield.

Question 3: Find the yield to call if the bond is called in 6 years with a call price of $1,020 (or 2% call premium).

Question 4: Find the bond's price in 4 years assuming that the yield to maturity is constant and the bond is not called.

Note: Please provide through step by step calculations.

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Finance Basics: Find the yield to maturity
Reference No:- TGS0881276

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