Albertson inc a food company recently issued a 2-year note, Ask an Expert

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Albertson, Inc., a food company, recently issued a 2-year note that pays a 3% coupon rate (paid annually) and expires on August 15, 2019. The current price of this note is 100-05 (in points and fractions)

What is this note’s yield to maturity?

It is now one year later and market yields for bonds/notes with similar characteristics have risen to 3.5%. What should now be the (dollar) price of the Albertson’s note? How do you explain the change of price from one year to the other?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92759483

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