Question
ABZ Corporation issued new 20 year bonds on January 1, 1990 the bonds sold at par (K1000) and paid a 12 % coupon annually. What
ABZ Corporation issued new 20 year bonds on January 1, 1990 the bonds sold at par (K1000) and paid a 12 % coupon annually. What was the bonds price and current yield on January 1, 2000, assuming interest rates fell to 10%? (6 marks) On January 1 2005 these bonds sold for K900 in the market. What was the YTM at that date?
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The Structured Credit Handbook
Authors: Arvind Rajan, Glen McDermott, Ratul Roy
1st Edition
0471747491, 978-0471747499
