Question
1) Exactly three years ago, Marianna bought a twenty-year, $25,000 par value bond that has 6.5% coupon rate and semi-annual payments. She paid $20,248.25 for
1) Exactly three years ago, Marianna bought a twenty-year, $25,000 par value bond that has 6.5% coupon rate and semi-annual payments. She paid $20,248.25 for the bond. If the yield to maturity on this bond is currently 7.4%, how much will Mary receive for her next coupon payment that she expects to receive exactly 6 months from today?
2) What is the yield to maturity (YTM) of a $1000 par value bond that current sells for $888.42, assuming that the bond has a coupon rate of 6.4% (annual payments) and 26 years remaining to maturity?
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Financial Analysis With Microsoft Excel 2016
Authors: Timothy R. Mayes, Todd M. Shank
8th Edition
1337298042, 9781337298049
