Question
A bond is selling at $900 (below its par value of $1000). The bond matures in 10 years and has pays offers a 5% coupon
A bond is selling at $900 (below its par value of $1000). The bond matures in 10 years and has pays offers a 5% coupon rate. Interest is paid semi-annually. What is the bonds yield-to-maturity?
A bond has face value of $1000 and a coupon rate of 6%. The bond has 24 years to maturity and pays interest semiannually. The market rate for bonds of this risk is currently 7%. What should this bond sell for?
A bond has face value of $1000 and a coupon rate of 8%. The bond has 4 years to maturity and pays interest semiannually. The market rate for bonds of this risk is currently 6%. What should this bond sell for?
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