Question
You buy an eight-year bond that has a 6% yield to maturity and a 6% coupon (paid annually). In one year, promised yields to maturity
You buy an eight-year bond that has a 6% yield to maturity and a 6% coupon (paid annually). In one year, promised yields to maturity have risen to 7.5% .
How much is the bond price now?
How much is the bond price one year later?
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Shape Up Your Finances
Authors: Ian Birt
2nd Edition
1925716422, 978-1925716429
