Question
The Treasury has just issued a semi-annual coupon bond that matures in 10 years with a face value of $1,000 and a couponrateof 4 percent.
- The Treasury has just issued a semi-annual coupon bond that matures in 10 years with a face value of $1,000 and a couponrateof 4 percent.
(a) What is the price of this bond if the yield to maturity on similar bonds was 5%?
(b) If the price of the bond is $1100, what is the yield to maturity?
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
