Question
(Yield to maturity) A bond's market price is $1,050.It has a $1,000 par value, will mature in 8 years, and has a coupon interest rate
(Yield to maturity) A bond's market price is $1,050.It has a $1,000 par value, will mature in 8 years, and has a coupon interest rate of 11 percent annual interest, but makes its interest payments semiannually.
What is the bond's yield to maturity?
What happens to the bond's yield to maturity if the bond matures in 16 years?
What if it matures in 4 years?
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
978-1118469941
