Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume...
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Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) Price (%) 3 83.50 5 102.50 9. 133.50 a. What is the yield to maturity of each bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Bond Coupon (%) YTM 3 5. % b. What is the duration of each bond? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Bond Coupon (%) Duration 3 years years 9 years 9, Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) Price (%) 3 83.50 5 102.50 9. 133.50 a. What is the yield to maturity of each bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Bond Coupon (%) YTM 3 5. % b. What is the duration of each bond? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Bond Coupon (%) Duration 3 years years 9 years 9,
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Sol YTM YTM is the rate at which PV of Cash inflows are equal to Bond price when the bond is held till maturity Yield to maturity YTM is the total return anticipated on a bond if the bond is held unti... View the full answer
Related Book For
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
Posted Date:
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