Bond Maturity Question?

0 ⤊

Bond Maturity Question?

11.Quick-Buck also plans to issue bonds with a maturity of 10 years from today, which pay interest semiannually, and provide an annual yield of 11%. What is the semiannual rate of interest on these bonds – the rate paid each six months?

2007-01-29 16:40:39 · 1 answers · asked by Warren G 1 in Business & Finance ➔ Other - Business & Finance

1 answers

Semi-annual rate per period = (100%+Annual Rate)^(1/2)-100%
5.3565% = (100%+11%)^(1/2)-100%

2007-02-01 17:03:24 · answer #1 · answered by csanda 6 · 0⤊ 0⤋