Question
A bond was issued three years ago at a price of $950 with a maturity of six years, a yield-to-maturity (YTM) of 6.75% compounded semi-annually,
A bond was issued three years ago at a price of $950 with a maturity of six years, a yield-to-maturity (YTM) of 6.75% compounded semi-annually, and a face value of $1,000 with semi-annualy coupons. What is the price of this bond today immediately after the receipt of today's coupon if the YTM has fallen to 5.50% compounded semi-annually?
|
| $905 |
|
| $931 |
|
| $956 |
|
| $981 |
|
| $1,006 |
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
3rd Edition
0073382426, 9780073382425
