Question
a year ago, a corporation issued a 10 year bond with face value of $1000 and a coupon rate of 6.7% at par. Today, interest
a year ago, a corporation issued a 10 year bond with face value of $1000 and a coupon rate of 6.7% at par. Today, interest rates have declinded, causing the yield to maturity to drop 1.31% versus the yield to maturity when the bond was issued last year. Calculate by what percentage the price of the bond has increased over the past year based on the decline in the yield to maturity.
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International financial management
Authors: Jeff Madura
13th edition
978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211
