Question
A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095. a) What is its yield
A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095.
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 4 years. What will the price be 4 years from today? Round your answer to the nearest cent.
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
7th Edition
1473778913, 978-1473778917
