Question
You bought a bond at a price of $990 12 months ago. The bond pays coupons semi-annually, has an annual coupon rate of 6%, a
You bought a bond at a price of $990 12 months ago. The bond pays coupons semi-annually, has an annual coupon rate of 6%, a face value of $1,000 and will mature in 30 months from today. It just paid the coupon yesterday. The current YTM is 15% and it will remain the same till expiration. What is the price today? What is the expected price after 12 months?
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Cornerstones Of Financial Accounting
Authors: Bertrand Piccard, Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen, Nick Jones
1st Edition
0324657730, 9780324657739
