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A bond has a $1,000 par value, 20 years to maturity, and a 5% annual coupon and sells for $860. What is its yield to
A bond has a $1,000 par value, 20 years to maturity, and a 5% annual coupon and sells for $860.
- What is its yield to maturity (YTM)? Round your answer to two decimal places.
- Assume that the yield to maturity remains constant for the next three years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.
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Corporate Finance Theory And Practice
Authors: Aswath Damodaran
2nd Edition
0471283320, 9780471283324
