Question
A 2-year bond with par value $1,000 making annual coupon payments of $105 is priced at $1,000. a. What is the yield to maturity of
A 2-year bond with par value $1,000 making annual coupon payments of $105 is priced at $1,000. a. What is the yield to maturity of the bond? b. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be (i) 6%, (ii) 9%, (iii) 12%?
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Funds Private Equity Hedge And All Core Structures
Authors: Matthew Hudson
1st Edition
1118790405, 978-1118790403
