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A bond has a $1,000 par value, 15 years to maturity, and a 8% annual coupon rate and is now selling for $983.

What's the yield to maturity of this bond?

Assume that the yield to maturity remains constant for the next 2 years. What will the price be 2 years from today?

Question 2

The current yield to maturity (YTM) of a 30-year coupon bond with $1,000 par value, 7.5% coupon rate and semi-annual payment is 4.61%. Let's assume that in 5 years, the YTM on this increases to 6.45%. What will the price be for this bond in 5 years?

Basic Finance, Finance

  • Category:- Basic Finance
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