Question
A Consol bond (Pays coupons Forever) has a coupon rate of 8%, payable semi-annually and sells for $900. Assume that the coupon payments will 6
A Consol bond (Pays coupons Forever) has a coupon rate of 8%, payable semi-annually and sells for $900. Assume that the coupon payments will 6 months from today.
What is the Yield to Maturity (YTM) for this consol bond? (4 DP: e.g. 0.1234)
What is the Effective Annual Yield for this Consol?
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Personal Finance
Authors: E. Thomas Garman, Raymond Forgue
9th Edition
0618938737, 978-0618938735
