A 25 year, zero coupon bond was recently being quoted at 11 625 of par Find the current yield and the promised yield of this issue, given that the bond has a par value of $1,000 Using semiannual compounding, determine how much an investor would have to pay for this bond if it were priced to yield 1...

Yield to Maturity N 25 PV 11625 PMT 0 FV 1000 CPT I 4398 2 8796 The ...

A 25-year, zero-coupon bond was recently being quoted at 11.625% of par. Find the current yield and

Question:

A 25-year, zero-coupon bond was recently being quoted at 11.625% of par. Find the current yield and the promised yield of this issue, given that the bond has a of $1,000. Using semiannual compounding, determine how much an investor would have to pay for this bond if it were priced to yield 12%.
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,...