Question
A 15-year, $1,000 par value bond has a 6.0% annual coupon payment. The bond currently sells for $935. (1) What is the yield to maturity
A 15-year, $1,000 par value bond has a 6.0% annual coupon payment. The bond currently sells for $935.
(1) What is the yield to maturity (YTM) of the bond?
(2) If the yield to maturity remains at its current rate, what will the price be 10 years from now?
| (1) 6.70% (2) $935.02 | ||
| (1) 6.00% (2) $1,000 | ||
| (1) 6.42% (2) $982.51 | ||
| (1) 3.35% (2) $1,222.07 | ||
| (1) 6.70% (2) $971.07 |
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
