Question
Problem 7-2 Yield to maturity and future price A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and
Problem 7-2 Yield to maturity and future price
A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095.
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 2 years. What will the price be 2 years from today? Round your answer to the nearest cent. $
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
6th Edition
1473749247, 9781473749245
