# CSM Corporation has a bond issue outstanding that has 15 years remaining to maturity and carries a

## Question:

CSM Corporation has a bond issue outstanding that has 15 years remaining to maturity and carries a coupon interest rate of 6%. Interest on the bond is paid on a semiannual basis. The par value of the CSM bond is $1,000, and it is currently selling for $874.42.

a. What is the bond’s yield to maturity?

b. What would the price be if the yield to maturity were 2% higher than in part a?

c. What would the price be if the yield to maturity were 2% lower than in part a?

Fantastic news! We've Found the answer you've been seeking!

## Step by Step Answer:

**Related Book For**

## Fundamentals Of Investing

**ISBN:** 9780135175217

14th Edition

**Authors:** Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk