What is the yield to maturity using the us bond equivalent

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1. In a bond market using a ‘‘30/360'' price quotation convention, how many days' worth of accrued interest would fall on February 29 during a leap year?

2. It is the year 2011 and there are exactly 30 years remaining until maturity on Daimler's dollar-denominated 8.5 percent bonds. These bonds pay a semiannual coupon of 4.25 percent for 30 years, and then the entire principal at maturity. Suppose Daimler's bonds are selling at par.

a. What is the yield to maturity using the U.S. bond equivalent yield calculation?

b. What is the yield to maturity using the German effective annual yield calculation?

Reference no: EM13871566

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