Bond A Bond B Bond C Face Value 1,000 1,000 1,000 Coupon Payment 75 100 115 Yield to Maturity 10% 10% 10% Maturity Period 12 12 12 Price Bond $829.66 $1,000.00 $1,102.21 Current Yield 9.04% 10.00% 10.43% Bond A is a Discount Bond, Bond B is a Par Value Bond and Bond C is a Premium Bond. The current price of Bond A is $829.66, Bond B is $1,000and Bond C is$1,102.21. The current yield of Bond A is 9.04%, Bond B is 10%and Bond C is10.43%. If the yield to maturity for each bond remains at 9%, what will be the price of each bond 2 years from now?
Bond A Bond B Bond C Face Value 1,000 1,000 1,000 Coupon Payment 75 100 115 Yield to Maturity 10% 10% 10% Maturity Period 12 12 12 Price Bond $829.66 $1,000.00 $1,102.21 Current Yield 9.04% 10.00% 10.43% Bond A is a Discount Bond, Bond B is a Par Value Bond and Bond C is a Premium Bond. The current price of Bond A is $829.66, Bond B is $1,000and Bond C is$1,102.21. The current yield of Bond A is 9.04%, Bond B is 10%and Bond C is10.43%. If the yield to maturity for each bond remains at 9%, what will be the price of each bond 2 years from now?
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
Related questions
Question
|
Bond A |
Bond B |
Bond C |
|
|
Face Value |
1,000 |
1,000 |
1,000 |
|
Coupon Payment |
75 |
100 |
115 |
|
Yield to Maturity |
10% |
10% |
10% |
|
Maturity Period |
12 |
12 |
12 |
|
Price Bond |
$829.66 |
$1,000.00 |
$1,102.21 |
|
Current Yield |
9.04% |
10.00% |
10.43% |
- Bond A is a Discount Bond, Bond B is a Par Value Bond and Bond C is a Premium Bond.
- The current price of Bond A is $829.66, Bond B is $1,000and Bond C is$1,102.21.
- The current yield of Bond A is 9.04%, Bond B is 10%and Bond C is10.43%.
If the yield to maturity for each bond remains at 9%, what will be the price of each bond 2 years from now?
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