A 20 year U S Treasury bond with a par value of $1,000 is currently selling for $1,025 from various securities dealers The bond carries a 6 percent coupon rate with payments made annually If purchased today and held to maturity, what is its expected yield to maturity ...

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A 20-year U.S. Treasury bond with a par value of $1,000 is currently selling for $1,025 from

Question:

A 20-year U.S. Treasury bond with a of $1,000 is currently selling for $1,025 from various securities dealers. The bond carries a 6 percent rate with payments made annually. If purchased today and held to maturity, what is its expected yield to maturity?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...