Question
7-2 YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 12 years to matu-rity, and an 8% annual coupon and sells
7-2 YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 12 years to matu-rity, and an 8% annual coupon and sells for $980.
a. What is its yield to maturity (YTM)? b. Assume that the yield to maturity remains constant for the next three years. What will the price be 3 years from today?
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Personal Finance Building Your Future
Authors: Robert Walker, Kristy Walker
2nd Edition
0077861728, 9780077861728
