A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $900. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters.
A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $900. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters.
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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Transcribed Image Text:A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $900. If
the yield to maturity remains at the current rate, what will the price be 10 years from now?
Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special
characters.
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