Question
A 20-year bond has 10% coupon rate (paid semi-annually; next coupon due 6 months from today) and $1,000 face value. Its yield to maturity (nominal,
A 20-year bond has 10% coupon rate (paid semi-annually; next coupon due 6 months from today) and $1,000 face value. Its yield to maturity (nominal, compounded semi-annually) is 8%.
- How much is a rational investor willing to pay for the bond?
If the yield to maturity decreases from 8% to 6%, what will happen to the bond price?
A 20-year bond has 10% coupon rate (paid semi-annually; next coupon due 6 months from today) and $1,000 face value. Its yield to maturity (nominal, compounded semi-annually) is 8%.
- How much is a rational investor willing to pay for the bond?
- If the yield to maturity decreases from 8% to 6%, what will happen to the bond price?
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Sustainable Value Creation An Inevitable Challenge To Business And Society
Authors: Teun Wolters
1st Edition
3031353501, 978-3031353505
