What is yield to maturity on municipal bond scheduled

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1. What is the duration of a bond that will pay $50 per year in coupon payments and $1,000 after four years? Use a discount rate of 10 percent.

A. 8.4 years C. 3.7 years B. 4.0 years D. 0.27 years

2. What is the yield to maturity on a municipal bond scheduled to pay $10,000 upon maturity 5 years from now? This is a zero coupon bond selling for $8,220. Round the yield to maturity to the nearest percent.

A. 8 percent C. 4 percent B. 5 percent D. 3 percent

Reference no: EM131346277

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