7. On 3/25/2016, a bond has exactly eleven years left until maturity and a YTM of 5.0%. The bond has a coupon rate of 4.0%. 1) What is the quoted price on 9/25/2016? 2) What is the bond's EAR on 9/25/2016? 3) Exactly eighteen months later the quoted price is 104.855. What would be the bond's YTM and its current yield given this price?
7. On 3/25/2016, a bond has exactly eleven years left until maturity and a YTM of 5.0%. The bond has a coupon rate of 4.0%. 1) What is the quoted price on 9/25/2016? 2) What is the bond's EAR on 9/25/2016? 3) Exactly eighteen months later the quoted price is 104.855. What would be the bond's YTM and its current yield given this price?
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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7. On 3/25/2016, a bond has exactly eleven years left until maturity and a YTM of 5.0%. The bond has a coupon rate of 4.0%.
1) What is the quoted price on 9/25/2016?
2) What is the bond's EAR on 9/25/2016?
3) Exactly eighteen months later the quoted price is 104.855. What would be the bond's YTM and its current yield given this price?
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