Bond Price Movements Consider the Volkswagen bond in question 6.5(c). If yields remain unchanged, what do you

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Bond Price Movements Consider the Volkswagen bond in question 6.5(c). If yields remain unchanged, what do you expect the price of this bond will be 1 year from now?

In 2 years? What’s going on here? Illustrate your answers by graphing bond prices versus time to maturity. Assume the coupon payments are made at the beginning of the year and YTM is 4 per cent.

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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