Question
1. Assume a bond has a coupon rate of 4%, par value of $1,000, and 14 years left to maturity. Assuming the bond indenture specifies
1. Assume a bond has a coupon rate of 4%, par value of $1,000, and 14 years left to maturity. Assuming the bond indenture specifies semi-annual payments and that the buyer pays $1,300 for the bond, what is the bonds yield to maturity?
2.Assume a bond has a coupon rate of 4%, par value of $1,000, and 14 years left to maturity.The bond indenture specifies semi-annual payments and the yield to maturity is 5.5%. What is the market price of the bond?
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
