Question
Problem 7-2 Yield to maturity and future price A bond has a $1,000 par value, 20 years to maturity, and a 5% annual coupon and
Problem 7-2 Yield to maturity and future price
A bond has a $1,000 par value, 20 years to maturity, and a 5% annual coupon and sells for $860.
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? Do not round intermediate calculations. Round your answer to the nearest cent. $
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Public Finance And Public Policy
Authors: Arye L. Hillman
2nd Edition
0521738059, 978-0521738057
