You are interested in purchasing a bond from ExAm Solutions. The bond had a 40 year maturity when it was issued, which was 10 years ago. Its face value was $1,000. The bond pays quarter interest at an 8% coupon rate. The bond currently trades at a price of $950, what is the YTM a. .092 b. .0222 c. A different value d. .0846 e. .0889
You are interested in purchasing a bond from ExAm Solutions. The bond had a 40 year maturity when it was issued, which was 10 years ago. Its face value was $1,000. The bond pays quarter interest at an 8% coupon rate. The bond currently trades at a price of $950, what is the YTM a. .092 b. .0222 c. A different value d. .0846 e. .0889
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You are interested in purchasing a bond from ExAm Solutions. The bond had a 40 year maturity when it was issued, which was 10 years ago. Its face value was $1,000. The bond pays quarter interest at an 8% coupon rate. The bond currently trades at a price of $950, what is the YTM
a.
.092
b.
.0222
c.
A different value
d.
.0846
e.
.0889
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