7. Yield, Price, and TYM. A corporate bond maturing in 22 years with a coupon rate of...
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7. Yield, Price, and TYM. A corporate bond maturing in 22 years with a coupon rate of 8.2 percent was purchased for $1100.
(a) What is its current yield?
(b) What will the bond’s selling price be if comparable market interest rates rise 1.8 percentage points in two years?
(c) Calculate the bond’s YTM using Equation (14.6) or the Garman/Forgue companion website.
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