Question
In Excel Solve: A 4-year, $1,000 par value bond has a 6% semi-annual coupon. The bond currently sells for $850. a. If the yield to
In Excel Solve:
A 4-year, $1,000 par value bond has a 6% semi-annual coupon. The bond currently sells for $850.
a. If the yield to maturity remains at its current rate, what will the price be 2 years from now?
b. What should be the yield to maturity 2 years from now so that the bond sells for $1100 then?
c. If the bond is called 3 years from now for a price of $1,050, what is YTC today?
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
