A a bond has a coupon rate of 36 a maturity date of 1 june, Ask an Expert

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a) A bond has a coupon rate of 3.6%, a maturity date of 1 June 2017, a current value of 92.45% and coupon frequency is semi-annual. If today is 1 June 2014, calculate the current yield, the yield to maturity and the duration of the bond.

b) What are the advantages and disadvantages of convertible bonds to both the company issuing the bonds and the investor buying the bonds?

c) How does the time left to maturity affect the price and the interest rate sensitivity of a bond?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93053066

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