You buy an 8% coupon, 20-year maturity bond when its yield to maturity is 9%. (Assume semiannual
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You buy an 8% coupon, 20-year maturity bond when its yield to maturity is 9%. (Assume semiannual "coupon payments.) Six months later, the yield to maturity is 10%. What is your return over the 6 months?
MaturityMaturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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Related Video
The yield to maturity (YTM) is the percentage rate of return for a bond assuming that the investor holds the asset until its maturity date. This video will give a complete tutorial on how to calculate Yield to Maturity on Microsoft Excel
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