Question
Problem 7-2 Yield to maturity and future price A bond has a $1,000 par value, 8 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, 8 years to maturity, and a 7% annual coupon and sells for $980.
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? Do not round intermediate calculations. Round your answer to the nearest cent. $
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Risk Management And Financial Institutions
Authors: John C. Hull
3rd Edition
1118269039, 9781118269039
