4. A five-year bond has a $10,000 par value and pays semi-annual coupons of $1,000. The bond's yield-to-maturity is 8%.
Posted: Fri Mar 04, 2022 9:40 am
- 4 A Five Year Bond Has A 10 000 Par Value And Pays Semi Annual Coupons Of 1 000 The Bond S Yield To Maturity Is 8 1 (32.84 KiB) Viewed 49 times
4. A five-year bond has a $10,000 par value and pays semi-annual coupons of $1,000. The bond's yield-to-maturity is 8%. 1 (a) How much would you be prepared to pay for the bond? (b) What should the price of the bond be one year from now? (c) If all happens as expected, what rate of return would an investor expect if they buy the bond today and sell it in one year?