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Bond Description Years Coupon Par Value YTM Current Price 30 year bond with a 5% coupon, but rates have risen to 6%. Assume annual payment.
| Bond Description | Years | Coupon | Par Value | YTM | Current Price |
| 30 year bond with a 5% coupon, but rates have risen to 6%. Assume annual payment. | 30 | $ 50.00 | $ 1,000.00 | 6.00% | |
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| 10 year bond with a 3.5% coupon, but rates have risen to 4%. Assume annual payment. | 10 | $ 35.00 | $ 1,000.00 | 4.00% | |
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| Bond selling $877, 10 years with 9% coupon. Solving for I/YR, the YTM of this bond is 10.91%. This bond sells at a discount, because YTM > coupon rate. | 10 | $ 60.00 | $ 1,000.00 | ($1,050.00) | |
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Simple Techniques For Managing Your Finances
Authors: Geary Reid
1st Edition
9768305231, 978-9768305237
