A 5.44% annual coupon, 7-year bond has a yield to maturity of 3.66%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is bond price expected to be in one year?
A 5.44% annual coupon, 7-year bond has a yield to maturity of 3.66%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is bond price expected to be in one year?
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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A 5.44% annual coupon, 7-year bond has a yield to maturity of 3.66%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is bond price expected to be in one year?
A 4.64% annual coupon, 24-year bond has a yield to maturity of 8.98%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Capital Gains Yield for this bond? Please share your answer as a %.
A 5.59% annual coupon, 7-year bond has a yield to maturity of 4.05%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Current Yield for this bond? answer as %.
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