Question
1. A 9-year, $1000 face value bond makes annual payments and has a coupon rate of 8.5 percent. If the current yield on the bond
1. A 9-year, $1000 face value bond makes annual payments and has a coupon rate of 8.5 percent.
If the current yield on the bond is 8.5 percent, what is the bonds price? Answer: 1000
2. Suppose that a year from now the bond sells at a yield to maturity of 8.1 percent. What is the price of the bond? Enter your answer rounded to two decimal places.
Answer Q2 PLEASE
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Foundations Of Financial Markets And Institutions
Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones
4th Edition
0136135315, 978-0136135319
