Computation of yield to maturity and its effective annual yield
The 8 percent coupon bonds of the Petersen Co. are selling for 98 percent of par value. The bonds mature in 5 years and pay interest semi-annually. These bonds have current yield of percent, a yield to maturity of percent, and an effective annual yield of percent.
a. 8.50; 8.16; 8.33
b. 8.18; 8.00; 8.16
c. 8.50; 8.00; 8.33
d. 8.16; 8.50; 8.33
e. 8.16; 8.50; 8.68