Question
A 2-year bond with par value $1,000 making annual coupon payments of $102 is priced at $1,000. Required: What is the yield to maturity of
A 2-year bond with par value $1,000 making annual coupon payments of $102 is priced at $1,000.
Required:
What is the yield to maturity of the bond?
What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be (i) 5%, (ii) 7%, (iii) 9%?
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Entrepreneurial Finance
Authors: Gary E. Gibbons, Robert D. Hisrich, Carlos Marques DaSilva
1st Edition
1452274177, 978-1452274171
