Question
2.) A two-year bond pays a coupon rate of 10% and has a face value of $1,000. (In other words, the bond pays interest of
2.) A two-year bond pays a coupon rate of 10% and has a face value of $1,000. (In other words, the bond pays interest of $100 per year, plus principal of a $1,000 in year 2) If the bond sells for $960, what is its approximate yield to maturing? (Hint: Thi requires some trial and error calculations.
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Financial and Management Accounting
Authors: Pauline Weetman
7th edition
1292086599, 978-1292086590
