Question
Yield to maturity and future price A bond has a $1,000 par value, 7 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, 7 years to maturity, and a 9% annual coupon and sells for $1,095.
a. What is its yield to maturity (YTM)? Round your answer to two decimal places. ._____ %
b. Assume that the yield to maturity remains constant for the next 4 years. What will the price be 4 years from today? Round your answer to the nearest cent. $______
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Financial Analysis With Microsoft Excel
Authors: Timothy R. Mayes
9th Edition
0357442059, 9780357442050
