Calculate the yield to maturity for a corporate bond issued by DaimlerChrysler with the price of $800.20,
Question:
Calculate the yield to maturity for a corporate bond issued by DaimlerChrysler with the price of $800.20, where the bond has a maturity of 11 years, a face value of $1,000, and the annual interest payment is $70. Assume that interest payments are made annually at the end of each year. What is the future value of the corporate bond?
a. Should the interest rates decrease to 3%, how many years does the bond take to mature?
b. If the interest rate decreases to 7%, what should be the annual interest payment for the bond to be sold at the same price of $800.20?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
To calculate the yield to maturity YTM of the corporate bond you can use the following formula YTM C ...View the full answer
Answered By
Jonas Araujo
I have recently received the degree of PhD. In Physics by the Universidade Federal do Maranhão after spending a term in Durham University, as I have been awarded a scholarship from a Brazilian mobility program. During my PhD. I have performed research mainly in Theoretical Physics and published works in distinguished Journals (check my ORCID: https://orcid.org/0000-0002-4324-1184).
During my BSc. I have been awarded a scholarship to study for a year in the University of Evansville, where I have worked in detection-analysis of photon correlations in the the Photonics Laboratory. There I was a tutor in Electromagnetism, Classical Mechanics and Calculus for most of that year (2012).
I am very dedicated, honest and a fast learner, but most of all, I value a job well done.
1+ Reviews
10+ Question Solved
Related Book For 
Financial Markets And Institutions
ISBN: 9781292215006
9th Global Edition
Authors: Stanley Eakins Frederic Mishkin
Question Posted:
