Question
Last year, you bought a bond with face value $1000, maturity 20 years, coupon rate of 5.5% per year payable semi-annually and yield to maturity
Last year, you bought a bond with face value $1000, maturity 20 years, coupon rate of 5.5% per year payable semi-annually and yield to maturity of 7% per year. Currently the bond sells for $900. How much would be your total yield if you sell this bond today?
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Step: 1
Face value of the bond 1000 Maturity of the bond 20 years Coupon rate 55 per year semiannua...
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
