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Yah Yah Corporation (YY) issued a bond that matures in 10 years with face value $1,000. The bond pays 8% semi-annual coupon and it is
Yah Yah Corporation (YY) issued a bond that matures in 10 years with face value $1,000. The bond pays 8% semi-annual coupon and it is priced today at $1,100. What yield you should be expecting from YY? Another company, Nah Nah Corporation (NN) bonds also have maturity of 10 years with face value $1,000, and it is selling at discount. NN bonds are viewed by investors as having the same risk as YY. What can you say about NN's coupons? As an investor, you anticipate that there will be significant drop in interest rates next year, What type of bonds would you invest in this year
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