Question
Problem 14-23 A 2-year bond with par value $1,000 making annual coupon payments of $105 is priced at $1,000. a. What is the yield to
Problem 14-23
A 2-year bond with par value $1,000 making annual coupon payments of $105 is priced at $1,000.
a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.)
b. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be (i) 6%, (ii) 9%, (iii) 12%? (Round your answers to 2 decimal places.)
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
