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La Quinta Hotels issued a new series of bonds on January 1, 2016. The bonds were issued with a $1000 face value, a 12% coupon
La Quinta Hotels issued a new series of bonds on January 1, 2016. The bonds were issued with a $1000 face value, a 12% coupon and a maturity of 30 years. The required rate of return for the bond after 5years is 10%. What will be the value of the bond 5 years later? And what will be the current yield of the bond 5 years later? Assuming the bonds value in 2039 will be $916.42, then what will be the yield to maturity (required rate of return) in that year?
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