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A DPG bond has 1 0 years until maturity and a coupon rate of 1 0 % payable annually and sells for $ 1 1
A DPG bond has years until maturity and a coupon rate of payable annually and sells for $ a What is the current yield on the bond? b What is the yield to maturity of the bond? Note that you can use financial calculator or Excel to find YTM but in such case you have to show that using YTM as a discount rate would give you value of bond today equals to $ c If the bond's YTM raises to after two years, what will be the value of bond after two years? Hints: After two years, the bond will have just more years remain to maturity. dont use excel and show steps
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