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 2 years. What will the price be 2 years from today? Round your answer to the nearest cent. $ _____________
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Authors: William O. Cleverley, James O. Cleverley, Paula H. Song
7th Edition
0763789291, 978-0763789299
