Question
A bond with a face value of $1,000 has annual coupon payments of $100. It was issued 10 years ago and has 7 years remaining
A bond with a face value of $1,000 has annual coupon payments of $100. It was issued 10 years ago and has 7 years remaining to maturity. The current market price for the bond is $1,000. Which of the following is true:
I. Its YTM is 9.5%.
II. Bond's coupon rate is 9.5%.
III. The bond's market quote is 100. (Note: Market quote is the market price as a percent of the face value.)
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
