Question
WILL UPVOTE!! Q6: A 20-year, $5,000 par value bond has an 5.0% annual payment coupon. The bond currently sells for $4,900. If the yield to
WILL UPVOTE!! Q6:
A 20-year, $5,000 par value bond has an 5.0% annual payment coupon. The bond currently sells for $4,900. If the yield to maturity remains at its current rate, what will the price be 5 years from now? First find the YTM at this time, then use the YTM with the other data to find the bond's price 5 years later).
You are not required to show calculations. However to receive credit you must provide the inputs used (N, PMT, FV, I/Y, PV) to solve. If you utilize a template, you can copy and paste the section used in the submission.
$4,955.02 | ||
$4,910.42 | ||
$4,900.00 |
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