Yield, Price, and YTM. A corporate bond maturing in 15 years with a coupon rate of 9.9
Question:
Yield, Price, and YTM. A corporate bond maturing in 15 years with a coupon rate of 9.9 percent was purchased for $980 and it now selling for $1,010.
(a) What is its current yield?
(b) What will be its selling price in two years if comparable market interest rates drop 1.9 percentage points?
(c) Calculate the bond’s YTM using Equation 14.5 or the Garman/Forgue companion website.
AppendixLO1
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Related Book For
Personal Finance Tax Update
ISBN: 9780357438947,9780357438930
13th Edition
Authors: E. Thomas Garman , Raymond Forgue
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