bond yields

cyam502

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Mar 29, 2010
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Hello everyone. I am working on some of my problems for my finance class and I am a little confused. Please correct and help me on these problems.
Bond a has an annual coupon payment and the two other bonds have a semi annual pmt. face value is 1000.

Bond a Bond b Bond c
Price-96 105.75 114.10
coupon rate- 6.79% 7.45 8.875
maturity- 17 7 5
rating- bb bb bb

what are the yields to maturity of each bond?
for bond a i got 7.94%=ytm

for the other two bonds i was wondering if i should multiply the pmt by two, divide n by 2 and then multiply i by two because its semiannual. please help
 
cyam502 said:
Bond a has an annual coupon payment .....

Bond a Bond b Bond c
Price-96 105.75 114.10
coupon rate- 6.79% 7.45 8.875
maturity- 17 7 5
rating- bb bb bb

for bond a i got 7.94%=ytm
If I'm reading Bond a right:
$96 is the purchase price of a $100 bond, due in 17 years, with annual coupons of $6.79 : correct?

HOW did you get 7.94% as the ytm?
 
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