9-2 YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and s
Posted: Sun Jul 03, 2022 12:56 pm
9-2
YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 parvalue, 10 years to maturity, and a 7% annual coupon and sells for$985.
a. What is its yield to maturity(YTM)?
b.Assume that the yield to maturity remains constant for thenext 3 years.What will the price be 3 years from today?
YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 parvalue, 10 years to maturity, and a 7% annual coupon and sells for$985.
a. What is its yield to maturity(YTM)?
b.Assume that the yield to maturity remains constant for thenext 3 years.What will the price be 3 years from today?