Question
You buy a bond for $970 that has a coupon rate of 7.0% and a 9-year maturity. A year later, the bond price is $1,120.
| You buy a bond for $970 that has a coupon rate of 7.0% and a 9-year maturity. A year later, the bond price is $1,120. (Assume a face value of $1,000 and annual coupon payments.) |
| a. | What is the new yield to maturity on the bond? |
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Pricing And Liquidity Of Complex And Structured Derivatives
Authors: Mathias Schmidt
1st Edition
3319459694, 978-3319459691
