A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8%
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A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8%
with interest paid semi-annually. If the current market price is $750, what is the yield to
maturity for this bond?
What would happen to this bond’s price if yield to maturity
suddenly dropped to 3.5%? Describe/comment on the relationship between yields and
bond prices.
11 years ago
A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8%
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a_bond_has_a_par_value_of.xls
