Suppose a bond has a face value of $1,000, with a coupon rate of 8%, and five years left to maturity. The coupon payments are semi-annual and the bond is currently trading at $1,000, meaning it is trading at par. What is the yield of maturity? Face Value: Annual Coupon Rate: Years to Maturity: Coupon Payments per Year: Current Bond Price: Yield to Maturity: $1,000 8% 5 2 $1,000 8.00%
Suppose a bond has a face value of $1,000, with a coupon rate of 8%, and five years left to maturity. The coupon payments are semi-annual and the bond is currently trading at $1,000, meaning it is trading at par. What is the yield of maturity? Face Value: Annual Coupon Rate: Years to Maturity: Coupon Payments per Year: Current Bond Price: Yield to Maturity: $1,000 8% 5 2 $1,000 8.00%
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 bond has a face value of $1000, with a
company rate 8%. mature in five year and
company payment semi annual. how to
find the current bond price and yeild rate
Suppose a bond has a face value of $1,000, with a coupon rate of 8%, and five years left
to maturity. The coupon payments are semi-annual and the bond is currently trading at
$1,000, meaning it is trading at par. What is the yield of maturity?
Face Value:
Annual Coupon Rate:
Years to Maturity:
Coupon Payments per Year:
Current Bond Price:
Yield to Maturity:
$1,000
8%
5
2
$1,000
8.00%
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