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    Yield to maturity calculations for bond

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    Consider this:
    Zero coupon money multiplier notes of 2008.

    Bonds were issued on July 1,1990 for $100. Interest is paid every July 1 and the bond matures on July 1, 2008. Determine the yield to maturity if the bonds are purchased at the:

    a. issue price in 1990
    b. Market price as of July 1, 2004, of $750
    c. Explain why the returns calculated in (a) and (b) are different.

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    https://brainmass.com/business/bond-valuation/yield-maturity-calculations-bonds-186648

    Solution Preview

    Please find the solutions attached. I have answered the question using the PV tables as well as by using excel.

    Consider this:
    Zero coupon money multiplier notes of 2008.
    Bonds were issued on July 1,1990 for $100. Interest is paid every July 1 and the bond matures on July ...

    Solution Summary

    Word and Exel files attached answer the question with a PV table.

    $2.19