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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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780077178239
3rd Edition
Authors: David Hillier, Iain Clacher, Stephen A. Ross
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