Question
A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and sells for $980. a) What is its yield
A bond has a $1,000 par value, 8 years to maturity, and a 7% 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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Essentials Of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
9th International Edition
1259254801, 9781259254802
