Question
A bond has a $1,000 par value, 24 years to maturity, and a 5.5% annual coupon and sells for $900. a) What is its yield
A bond has a $1,000 par value, 24 years to maturity, and a 5.5% annual coupon and sells for $900.
a) What is its yield to maturity (YTM)?
b) Assuming that the yield to maturity remains constant, what will the price be 1 year from today?
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
