Question: A $1000, 9.5% coupon Government of Canada bond has 10 years remaining until its maturity. It is currently priced at 108.25 (percent of face value).

A $1000, 9.5% coupon Government of Canada bond has 10 years remaining until its maturity. It is currently priced at 108.25 (percent of face value).
a. What is the bond’s yield to maturity?
b. If the bond price abrupt lyrisesby$25, what is the change in its yield to maturity?

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Given FV 1000 a The bonds yieldtomaturity is 2 i where The solution is i 4136 Therefore YTM ... View full answer

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