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5 years ago P&G issue debt with following parameters: $1000 face value, 6% coupon, paid semi-annually, 10 years to maturity 1)It today current interest rate
5 years ago P&G issue debt with following parameters: $1000 face value, 6% coupon, paid semi-annually, 10 years to maturity
1)It today current interest rate for bonds are selling at annual yield to maturity of 4% what is price of P&G bond today?
2)If you were to buy bond in part 1 at price you calculatedand 4 years later interest rates and maturities are now 2%
A. What is price of bond at that time?
B. What would total % return be?
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