A bond has $1,000 par value, 10 years to maturity, a 7 percent coupon, and sells for $985.
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Current yield and yield to maturity:
A bond has $1,000 par value, 10 years to maturity, a 7 percent coupon, and sells for $985.
a. What is its current yield?
b. What is its yield to maturity (YTM)?
c. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today?
11 years ago
A bond has $1,000 par value, 10 years to maturity, a 7 percent coupon, and sells for $985
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a_bond_has_1000_par_value.doc
