A bond matures in 12 years and pays an 8 percent coupon, Ask an Expert

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A bond matures in 12 years and pays an 8 percent coupon rate paid semi-annually. The bond has a face value of $1,000, and currently sells for $$1310.

a. What is the bond’s current yield and yield to maturity?

b. If rates on bonds of similar risk and maturity fall to 5 %, what will be the price of the bond?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92059252

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