Yield, Price, and YTM. A corporate bond maturing in 22 years with a coupon rate of 8.2

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Yield, Price, and YTM. A corporate bond maturing in 22 years with a coupon rate of 8.2 percent was purchased for $1,100 and is now selling for $1,190.

(a) What is its current yield?

(b) Calculate the bond’s YTM using Equation (14.5) or the Garman/

Forgue companion website.

(c) What will the bond’s selling price be if comparable market interest rates rise 1.8 percentage points in two years?

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Personal Finance Tax Update

ISBN: 9780357438947,9780357438930

13th Edition

Authors: E. Thomas Garman , Raymond Forgue

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Question Posted: Jul 24, 2024 06:00 AM

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Yield, Price, and YTM. A corporate bond maturing in 22 years with a coupon rate of 8.2

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Personal Finance Tax Update

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