Question
Jackson bought a 10-year, $1,000 PAR coupon bond today. Annual coupon rate is 11%. Coupons are paid once in a year. When he purchased, Jackson
Jackson bought a 10-year, $1,000 PAR coupon bond today.
Annual coupon rate is 11%. Coupons are paid once in a year.
When he purchased, Jackson was hoping for a YTM of 10% on this Bond.
Assume that Jackson's return expectations did not change and 2 years have passed. How much should be the current value of the Bond that Jackson bought? Enter your answer in the following format: 1234.56 Hint: Answer is between 948.01 and 1179.75
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Financial Statement Analysis & Dividend Investing
Authors: Andrew P.C.
1st Edition
1075873940, 978-1075873942
