12 year $1000 bond pays 9% interest. The maturity on a comparable risk bond is 6%. Current price of bond $1130 What is the yield to maturity on the bond given the current market price of the bond?
12 year $1000 bond pays 9% interest. The maturity on a comparable risk bond is 6%. Current price of bond $1130 What is the yield to maturity on the bond given the current market price of the bond?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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12 year $1000 bond pays 9% interest.
The maturity on a comparable risk bond is 6%.
Current price of bond $1130
What is the yield to maturity on the bond given the current market price of the bond?
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