Question
A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8% with interest paid annually.
A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8% with interest paid annually. Current market price of the bond is $800. 1) What is the current yield of bond? 2) What is the yield to maturity (YTM) of the bond? 3) What will be the percentage capital gain yield of this bond over the next year if its yield to maturity remained unchanged?
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Interest Rate Swaps And Their Derivatives A Practitioners Guide
Authors: Amir Sadr
1st Edition
0470443944, 978-0470443941
