Question
a) Consider a bond with a coupon rate 5.8% that pays annual coupons matures in 28 years and has a YTM of 9 percent. assume
a) Consider a bond with a coupon rate 5.8% that pays annual coupons matures in 28 years and has a YTM of 9 percent. assume the bond has a face value of 1,000. how much will the price of this bond increase if the YTM decreases to 2.5
b) a bond has a coupon rate of 12 percent pays interest semi annually matures in 40 years and has a YTM of 9.5 what is the present value of this bond assume the bond has a face value of 1,000
c) a bond is trading at its par value the bond has a coupon rate of 15 percent pays interest annually and matures in 5 years. given this information what is the yield to maturity
d) a bond has a face value of 1,000 but it currently is trading for 1,250. if the coupon rate on this bond is 6 percent what does this imply about the YTM
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