Question
1. A corporation issues a bond with a 10-year maturity and a 4:00% coupon. If this bond begins to trade in the secondary market at
1. A corporation issues a bond with a 10-year maturity and a 4:00% coupon. If this bond begins to trade in the secondary market at a 4.15% YTM; what is the bonds dollar price per $1000.00 par value?
2. XYZ Corporation issued a 30-year bond 10 years ago. The bond has a 7.50% coupon. If this bond is now trading at a 4.50% YTM; what is its current dollar price?
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
