Question
A bond was issued three years ago at a price of $1,040 with a maturity of six years, a yield-to-maturity (YTM) of 5.25% compounded semi-annually,
A bond was issued three years ago at a price of $1,040 with a maturity of six years, a yield-to-maturity (YTM) of 5.25% 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 risen to 6.50% compounded semi-annually?
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Contemporary Issues In Quantitative Finance
Authors: Ahmet Can Inci
1st Edition
1032101121, 978-1032101125
