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1.) A $1,000 coupon bond pays a coupon annually and has 10 years remaining until maturity. a.) What is its today's price (value) if it's
1.) A $1,000 coupon bond pays a coupon annually and has 10 years remaining until maturity.
a.) What is its today's price (value) if it's bought at a yield to maturity of 10%?
b.) Assuming the required yield to maturity stays constant at 10%, at what price should this bond sell at in one year hence, i.e., when it has 9 years remaining to maturity?
C.) What should be the price of this bond at maturity (i.e. one second before it matures)? (No need for a calculation here)
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