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    Par yields for bonds

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    Zero rates - 6 months= 4.0816%
    12 months= 5.1957%
    18 months= 5.5176%
    24 months= 5.8937%

    What are the 6-month, 12-month, 18-month par yields for bonds that provide semi-annual coupon payments?

    Estimate the price and yield of a two-year bond providing a semi-annual coupon of 7% per annum.

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    Solution Summary

    This solution calculates par yields for bonds with semi-annual coupon payments.