Considera$1,100-par-valuebondwiththefollowingcharacteristics: A current market price of $1,300, 7 years until maturity, A5 percentcoupon rate(with interest paid annually).
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Question:
Considera$1,100-par-valuebondwiththefollowingcharacteristics: A current market price of $1,300,
7 years until maturity,
A5 percentcoupon rate(with interest paid annually).
Wewanttodeterminethediscountratethatsetsthepresentvalueofthebond'sexpectedfuture cash-flow stream equal to the bond's current market price (YTM)
- CalculateYield toMaturity(YTM)
- note : I should to have the answer identical to this example, the present value should be at 3.5% and 5% and YTM range between them
Related Book For
Foundations Of Finance
ISBN: 9781292318738
10th Global Edition
Authors: Arthur Keown, John Martin, J. Petty
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