What is the bond yield to maturity

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A 40-year maturity bond with face value of $2,000 makes annual coupon payments and has a coupon rate of 20%.

a. What is the bond's yield to maturity if the bond is selling for $1,060? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

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 $1,260? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

Reference no: EM132689532

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