•9% coupon bond issued 20 years ago. The bond now has 10 years to maturity. Investors believe that at maturity date, bond holders receive 50% par value, bond price fallen to $650. What is the expected YTM?

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 6DTM
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Practice question
•9% coupon bond issued 20 years ago. The
bond now has 10 years to maturity. Investors
believe that at maturity date, bond holders
receive 50% par value, bond price fallen to
$650. What is the expected YTM?
•A. 12.63%
•B. 12.36%
• C. 13.62%
.D. 13.26%
Transcribed Image Text:Practice question •9% coupon bond issued 20 years ago. The bond now has 10 years to maturity. Investors believe that at maturity date, bond holders receive 50% par value, bond price fallen to $650. What is the expected YTM? •A. 12.63% •B. 12.36% • C. 13.62% .D. 13.26%
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ISBN:
9781337669214
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GARMAN
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