Question
Consider the following bond: Face value = $1000; coupon rate = 8%; yield to maturity = 5%; maturity = 5 years. a. If interest payments
Consider the following bond: Face value = $1000; coupon rate = 8%; yield to maturity = 5%; maturity = 5 years.
a. If interest payments are made annually, what is the value of this bond? What are this year's current yield to capital gains yield?
b. What is the value of the bond 3 years from now? What are the current yield to capital gains yield to be 3 years from now?
c. thank you.
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
3rd Edition
0470891696, 978-0470891698
