5 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25% and 8 years left to maturity. Today, the YTM on your bond is 8%. With this information, can you calculate the current market price of your bond? Assume fixed annual coupon payments and a par value of R1,000 A. R 1000 B. R 1061.20 C. R 1161.20 D. R 1020.6
5 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25% and 8 years left to maturity. Today, the YTM on your bond is 8%. With this information, can you calculate the current market price of your bond? Assume fixed annual coupon payments and a par value of R1,000 A. R 1000 B. R 1061.20 C. R 1161.20 D. R 1020.6
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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5 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25% and 8 years left to maturity. Today, the YTM on your bond is 8%. With this information, can you calculate the current market price of your bond? Assume fixed annual coupon payments and a par value of R1,000
A. R 1000
B. R 1061.20
C. R 1161.20
D. R 1020.61
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