Bond yields find the promised yield to maturity for a 7% coupon, $1,000 par 20 year bond selling at $1115.00. the bond makes semiannual coupon payments.
5.52%
6.07%
6.00%
6.22%

Yield to maturity = 2 × 3.037 = 6.07%

Given:

Face Value = $1000

Bond Price = $1115

Semi annual coupon interest = 1000 × % = $ 35

We'll equate the semi yield to maturity, using the following formula:

Semi yield to maturity =

where;

n = no. of semi annual period = 40

Using the value in above equation, we get

Semi yield to maturity =

Semi yield to maturity = 3.037%

Therefore , yield to maturity = 2 × 3.037 = 6.07%

no

step-by-step explanation:

2-7=-5

7-2=5

when you combing like terms for ech expression, 5 and -5. these numbers are not equal to each other.