Consider a bond with a par value of £1,000 and a coupon rate of 12.5 percent. The bond makes annual coupon payments and has a yield to maturity of 5.6% per cent. The current yield on these bonds is 6.5 per cent. How many years do these bonds have left until they mature?
Consider a bond with a par value of £1,000 and a coupon rate of 12.5 percent. The bond makes annual coupon payments and has a yield to maturity of 5.6% per cent. The current yield on these bonds is 6.5 per cent. How many years do these bonds have left until they mature?
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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3.2(a) Consider a bond with a par value of £1,000 and a coupon rate of 12.5 percent. The bond makes annual coupon payments and has a yield to maturity of 5.6% per cent. The current yield on these bonds is 6.5 per cent. How many years do these bonds have left until they mature?
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