Question
4. An investor is considering purchasing a bond with a 5.5 percent coupon interest rate, a par value of $1,000, and a market price of
4. An investor is considering purchasing a bond with a 5.5 percent coupon interest rate, a par value of $1,000, and a market price of $927.50. The bond will mature in 9 years. Based on this information, answer the following questions:
What is the bonds current yield?
What is the bonds approximate yield to maturity?
What is the bonds yield to maturity using a financial calculator?
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National Finance A Chinese Perspective
Authors: Yunxian Chen, Heming Yong
1st Edition
9813360917, 978-9813360914
