Question
Yield to maturity and future price A bond has a $1,000 par value, 10 years to maturity, and a 8% annual coupon and sells for
Yield to maturity and future price
A bond has a $1,000 par value, 10 years to maturity, and a 8% annual coupon and sells for $980.
- What is its yield to maturity (YTM)? Round your answer to two decimal places.
_____________ % - Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Round your answer to the nearest cent.
$ _____________
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
