Question
a 20 year bond with a principal value of 1,000,000 was issued 5 years ago, has a coupon rate of 10% with interest paid semi-annually
a 20 year bond with a principal value of 1,000,000 was issued 5 years ago, has a coupon rate of 10% with interest paid semi-annually and is priced at $100:
Current yield calculations: Coupon/bond price
1) assume a price of 100$ (% of par):
2) assume a price of 95$ (% of par):
3) assume a price of 105$ (% of par):
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Sport Finance
Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello
3rd Edition
1450421040, 978-1450421041
