Calculate the yield to maturity of a 10-year bond

Subject: General Questions    / General General Questions
Question

6. Using Excel, calculate the yield to maturity of a 10-year bond with an 6% annual coupon and a face value of 100$ that is currently selling for $103.50: (a) 5.53%; (b) 6%; (c) 103.5%.(d) 3%;

Now make use of the linear approximation to the yield to maturity: [C+((F-P)]/[0.5(F+P)]

7. What is the numerator of this expression: (a) 4.22; (b) 103.5; (c) 7.0; (d) 5.65;

8. What is the denominator of this expression: (a) 103.5; (b) 101.75; (c) 6.00; (d) 10;

9. What is the approximate yield to maturity: (a) 5.55%; (b) 3.25%; (c) 6%; (d) 10%;