Question
A two-year bond with par value $1,000 making annual coupon payments of $90 is priced at $1,000. a. What is the yield to maturity of
A two-year bond with par value $1,000 making annual coupon payments of $90 is priced at $1,000.
a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.)
Yield to maturity _____%??
b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 7.0%, (b) 9.0%, (c) 11.0%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Interest Rate Realized YTM
| Interest Rate | Realized YTM |
| 7.0% | _____%?? |
| 9.0% | _____%?? |
| 11.0% | _____%?? |
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Understanding Decentralized Finance How DeFi Is Changing The Future Of Money
Authors: Rhian Lewis
1st Edition
1398609390, 978-1398609396
