Question 5 On March 1, 2015, The Walt Disney Company issued a $1 billion 10-year bond, with a coupon rate of 6%. Coupon
Posted: Sun Jul 03, 2022 1:07 pm
- Question 5 On March 1 2015 The Walt Disney Company Issued A 1 Billion 10 Year Bond With A Coupon Rate Of 6 Coupon 1 (12.52 KiB) Viewed 14 times
Question 5 On March 1, 2015, The Walt Disney Company issued a $1 billion 10-year bond, with a coupon rate of 6%. Coupon payments are made semi-annually. a) If the yield to maturity (YTM) on the issue date was 5%, what price would an investor have paid for $1,000 par/face value of this bond (on March 1, 2015)? b) Assume that on March 1, 2017, two years after the bond was issued, an investor is willing to pay $950 (selling price) for this bond. What would be the YTM based on this price? c) Based on the current price of $950, what is the current yield?