Question
A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 8.20%. (Do not round intermediate calculations.
| A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 8.20%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) |
| a. | What is the bonds yield to maturity if the bond is selling for $920? |
| Yield to maturity | % |
| b. | What is the bonds yield to maturity if the bond is selling for $1,000? |
| Yield to maturity | % |
| c. | What is the bonds yield to maturity if the bond is selling for $1,120? |
| Yield to maturity | % |
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Fixed Income Markets And Their Derivatives
Authors: Suresh Sundaresan
3rd Edition
0123850517, 978-0123704719
