Find the price of a corporate bond maturing in 5 years that has a 8% coupon (quarterly payments), a $1,000 face value, and is rated Aa.  A local newspaper's financial section reports that the yields on 5 year bonds are:  Aaa = 6%, Aa = 7%, and A = 8%.       What is the yield to maturity of a corporate bond with a 3-year maturity, 5 percent coupon (semi-annual payments), a $1,000 face value, if the bond sold for $978.30?

Question

Find the price of a corporate bond maturing in 5 years that has a 8% coupon (quarterly payments), a $1,000 face value, and is rated Aa.  A local newspaper's financial section reports that the yields on 5 year bonds are:  Aaa = 6%, Aa = 7%, and A = 8%.

 

 

 

What is the yield to maturity of a corporate bond with a 3-year maturity, 5 percent coupon (semi-annual payments), a $1,000 face value, if the bond sold for $978.30?

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