Question
A 24-year, $1000 par value bond has a 7.5 percent annual coupon (7.5% APR), but coupon payments are made semi-annually. The bond sells today for
A 24-year, $1000 par value bond has a 7.5 percent annual coupon (7.5% APR), but coupon payments are made semi-annually. The bond sells today for $960.00.
Calculate the yield to maturity on the bond.
If the yield to maturity remains at its current rate, what will the price of the bond be eight years from now?
If the yield to maturity on the bond is 7.00% APR eight years from today, what will be the price of the bond?
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Banking Secrecy And Global Finance
Authors: Donato Masciandaro, Olga Balakina
1st Edition
1137400099, 978-1137400093
