Consider a Bank of America (BAC) bond that has a 6% coupon rate and pays annual coupons. The bond has 11 years to maturi
Posted: Thu May 19, 2022 7:06 am
Consider a Bank of America (BAC) bond that has a 6% coupon rate
and pays annual coupons. The bond has 11 years to maturity and the
yield to maturity is 8%. If this BAC bond has a face value of
$10,000, what is the current price of the bond?
What would the new price of the bond be if BAC stated that they
would not be paying coupons in years 1-4 and those coupons would
instead be paid at the end of maturity without interest?
and pays annual coupons. The bond has 11 years to maturity and the
yield to maturity is 8%. If this BAC bond has a face value of
$10,000, what is the current price of the bond?
What would the new price of the bond be if BAC stated that they
would not be paying coupons in years 1-4 and those coupons would
instead be paid at the end of maturity without interest?