Question
A bond has a $1,000 par value, 12 years to maturity, and a 8% annual coupon and sells for $980. a) What is its yield
A bond has a $1,000 par value, 12 years to maturity, and a 8% annual coupon and sells for $980.
a) What is its yield to maturity (YTM)? Round your answer to two decimal places.
b) Assume that the yield to maturity remains constant for the next 2 years. What will the price be 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.
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Fundamentals Of Financial Institutions Management
Authors: Marcia Cornett, Anthony Saunders
1st Edition
0256253676, 9780256253672
