Question
A company issues a bond that makes coupon payments semiannually. The YTM on this bond (expressed as annual percentage return, APR) is currently 8%. Maturity
A company issues a bond that makes coupon payments semiannually. The YTM on this bond (expressed as annual percentage return, APR) is currently 8%. Maturity rate is 11 years and coupon rate for this bond is 11% . a. What is the coupon payment? b. What is the price of the bond? c. What is the current yield on the bond? d. If YTM decreases to 7% APR in six months, what will be the price of bond six months later after you receive the first semi-annual coupon payment ? e. If you buy the bond now and sell it six months later, what will be your holding period return?
I'd appreciate if you'd reply quickly. Its kinda urgent.
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