A $2,000 bond with a 3.5% coupon compounded semi-annually is currently priced to yield 9% with 17 years remaining to maturity. What is the yield to maturity six years from now if the bond price rises $200 at that time?

A $2,000 bond with a 3.5% coupon compounded semi-annually is currently priced to yield 9% with 17 years remaining to maturity. What is the yield to maturity six years from now if the bond price rises $200 at that time?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 3P: Current Yield for Annual Payments Heath Food Corporations bonds have 7 years remaining to maturity....

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A $2,000 bond with a 3.5% coupon compounded semi-annually is currently priced
to yield 9% with 17 years remaining to maturity. What is the yield to maturity six
years from now if the bond price rises $200 at that time?
0.00 %

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