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Question 4 and 5 uses the following information: A 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for
Question 4 and 5 uses the following information: A 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. If the yield to maturity remains at its current rate- 4. What is the yield to maturity (YTM)? Show calculator input. 5. What will the price be of the bond 5 years from now, in other words the number of years changes from 25 to 20. Show formula and all work
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