Question
A bond with 22-year maturity was issued 5 years ago. The face value of this 11.92% quarterly coupon paying bond is $2,000. Analysts find that
A bond with 22-year maturity was issued 5 years ago. The face value of this 11.92% quarterly coupon paying bond is $2,000. Analysts find that the current yield to maturity of this bond is 12.36 percent.
Show your workings and find the value of this bond.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To find the value of the bond we need to calculate the present value of its future cash flows which ...
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
