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A 6% annual coupon bond has 11 years remaining until maturity. Par value is $1000. The required rate of return (yield to maturity)on the bond
| A 6% annual coupon bond has 11 years remaining until maturity. Par value is $1000. |
| The required rate of return (yield to maturity)on the bond is 8.5%. |
| Compute the price of the bond today using the appropriate Excel formula |
| Compute the price of the same bond if it has 10 years remaining to maturity instead of 11. |
| What is the capital gains yield on the bond? |
| What is the current yield on the bond? |
| What is the total yield on the bond? |
| What will the bond's price be at the instant before it matures? |
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Term Structure Models A Graduate Course
Authors: Damir Filipovic
2009th Edition
364226915X, 978-3642269158
