Question
A25-year, $1000 par value bond has an 8.5 percent annual coupon, but coupon payments are made semi-annually. The bond sells today for $935. a)If the
A25-year, $1000 par value bond has an 8.5 percent annual coupon, but coupon payments are made semi-annually. The bond sells today for $935.
a)If the yield to maturity remains at its current rate, what will the price of the bond be five years from now?
b)If the yield to maturity on the bond is 8.00% five years from today, what will be the price of the bond?
Please show excel formula and calculation
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
