Question
Today you observe a 5.5 percent coupon bond with 18 years left to maturity, 6.25% yield to maturity, semi-annual coupon payments, and face value of
Today you observe a 5.5 percent coupon bond with 18 years left to maturity, 6.25% yield to maturity, semi-annual coupon payments, and face value of $1,000.
(a) What is the price of this bond today?
(b) One year later, the yield to maturity on this bond is 5.75%. What is the rate of return on this bond over the one-year period?
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Foundations In Personal Finance
Authors: Dave Ramsey
1st Edition
0981683967, 978-0981683966
