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Yield to maturity and future price A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for
Yield to maturity and future price
A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110.
- What is its yield to maturity (YTM)? Round your answer to two decimal places. %
- Assume that the yield to maturity remains constant for the next 5 years. What will the price be 5 years from today? Round your answer to the nearest cent. $
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
