## Bond Yield Practice Problems

by Pamela Peterson Drake
- Suppose a bond has a price today of $800, a coupon rate of 4%, and
six years remaining to maturity. If interest is paid semi-annually, what is
this bond's yield to maturity?

- Suppose a bond has a price today of $800, a coupon rate of 4%, and
six years remaining to maturity. If interst is paid annually, what is this
bond's yield to maturity?

- The 6% coupon rate ABC bond has a price of $1,050, interest paid
semi-annually, and two years remaining to maturity. What is the ABC
bond's yield to maturity?
- Suppose a bond has a price today of $1,000, a coupon rate of 5%
and size years remaining to maturity. If interest is paid annually, what
is this bond's yield to maturity?

Solutions