Question
Use the following information for questions 1-3. A 10-year bond was just issued with a face value $1000, and a coupon rate of 3%. Its
Use the following information for questions 1-3.
A 10-year bond was just issued with a face value $1000, and a coupon rate of 3%. Its coupons are paid semi-annually. Its first coupon is six months from now, and it pays a final coupon at maturity.
1) If the bond's yield to maturity is 1% (APR), what is its price today? (Round to the nearest cent)
2) If the bond's yield to maturity is 3% (APR), what is its price today? (Round to the nearest cent)
3) If the bond's yield to maturity is 6% (APR), what is its price today? (Round to the nearest cent)
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Financial Management Concepts and Applications
Authors: Stephen Foerster
1st edition
013293664X, 978-0132936644
