The dollar price of the bond. Yield to Maturity: The yield to maturity is the total yield or return which is derived from a bond until the time of the maturity. For this, it is assumed that the bond will be held until the maturity and would not be called. Bond Price: The price of the bond refers to the present discounted value of the cash flows which will be generated from the bond in the future.

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Chapter 8, Problem 9QP

Summary Introduction

To determine: The dollar price of the bond.

Yield to Maturity:

The yield to maturity is the total yield or return which is derived from a bond until the time of the maturity. For this, it is assumed that the bond will be held until the maturity and would not be called.

Bond Price:

The price of the bond refers to the present discounted value of the cash flows which will be generated from the bond in the future.

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