Question
i) What is the YTM of a bond? How is it different from the coupon rate? ii) Consider a bond with a coupon rate
i) What is the YTM of a bond? How is it different from the coupon rate? ii) Consider a bond with a coupon rate of 10% and coupons paid annually. The par value is $1000 and the bond has 5 years to maturity. The yield to maturity is 11%. What is the value of the bond? iii) Consider the bond below Maturity 11/15/2041 Coupon Is this a premium or a discount bond? What is the current yield? 3.125 Bid 137.004 Asked 137.024 Change -0.032
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