Question
A bond has a face value of $1,000 and pays an annual coupon of $85. It matures in 8 years and currently trades for $1,204.34.
A bond has a face value of $1,000 and pays an annual coupon of $85. It matures in 8 years and currently trades for $1,204.34.
a. What is the bond's coupon rate?
b. What is the bond's current yield?
c. What is the bond's yield to maturity?
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Handbook Of Financial Econometrics
Authors: Yacine Ait-Sahalia, Lars Peter Hansen
1st Edition
044450897X, 978-0444508973
