Question
1.A semiannual coupon bond has a $1,000 par value, 11 years to maturity, and a 4.5% coupon rate (APR) and sells for $985. a.Find yield
1.A semiannual coupon bond has a $1,000 par value, 11 years to maturity, and a 4.5% coupon rate (APR) and sells for $985.
a.Find yield to maturity (YTM)
b.Assume that the yield to maturity remains constant for the next seven years. What will the price be 7 years from today?
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Multinational Financial Management
Authors: Alan C Shapiro, Paul Hanouna
11th Edition
1119559901, 9781119559900
