A $ 1000 bond has a coupon of 6 % and matures after 10 years
Question # 00622135
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Updated on: 11/25/2017 01:49 PM Due on: 11/25/2017
A $ 1000 bond has a coupon of 6 % and matures after 10 years
- What would be the bond's price if a comparable debt yields 8 percent
- What would be the price if comparable debt yields 8 percent and the bond matures after 5 years
- What are the price differences with 1 and 2 ?
- What are the current yields and yields to maturity in 1 and 2 ?
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Rating:
5/
Solution: A $ 1000 bond has a coupon of 6 % and matures after 10 years