Question
Problem 7-2 Yield to maturity and future price A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and
Problem 7-2 Yield to maturity and future price
A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985.
- What is its yield to maturity (YTM)? Round your answer to two decimal places. %
- Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Round your answer to the nearest cent. $
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
