Question
Suppose a bond has a face value of $100, annual coupon payments of $4, a maturity of 5 years, and a price of $90. a.
Suppose a bond has a face value of $100, annual coupon payments of $4, a maturity of 5 years, and a price of $90.
a. Write an equation that defines the yeild to maturity on this bond
b. Find the solution for the yield to maturity. (Show steps on done on calculator)
c. Suppose the price of the bond falls from $90 to $85 over a year. Calculate the bond's rate of return over the year
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Advances In Financial Machine Learning
Authors: Marcos Lopez De Prado
1st Edition
1119482089, 978-1119482086
