Question
A bond has a two-year maturity. The coupon rate is 5% per year. The price of the bond is $982. The coupons are paid annually.
A bond has a two-year maturity. The coupon rate is 5% per year. The price of the bond is $982. The coupons are paid annually. The face value of the bond is $1,000.
a) Is this bond a premium, discount, or a par bond? Please, explain.
b) What is the yield to maturity, YTM, of the bond?
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Accounting Comes Alive The Color Accounting Parable
Authors: Mark Robilliard ,Peter Frampton, Chang Chang, Mark Morrow, John Gorman
1st Edition
1450769608, 978-1450769600
