Question
Below is the list of prices for zero-coupon bonds of various maturities: Maturity Price of Zero 1 $971.00 2 $879.73 3 $805.94 a) A 9%
Below is the list of prices for zero-coupon bonds of various maturities:
| Maturity | Price of Zero |
| 1 | $971.00 |
| 2 | $879.73 |
| 3 | $805.94 |
a) A 9% coupon $1000 par bond pays an annual coupon and will mature in 3 years. What should the Yield to Maturity on the bond be?
b) If at the end of the year the yield curve flattens out at 8%, what will the 1 year holding period return be on the coupon bond?
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The Ten Commandments To A Financial Healing
Authors: Ms. Kemberley J Washington
1st Edition
1499607261, 978-1499607260
