Question: 1 ) Consider a coupon bond that has a par value of $ 9 0 0 and a coupon rate of 1 0 % .
Consider a coupon bond that has a par value of $ and a coupon rate of The bond is currently selling for $ and has years to maturity. What is the bond's yield to maturityYTM
The yield to maturity is
What is the price of a perpetuity that has a coupon of $ per year and a yield to maturity of
The price of the perpetuity is $
A bond has a face value of $ and an coupon rate, its current price is $ and it is expected to increase to $ next year.
The current yield is
How much would you pay for a perpetual bond that pays an annual coupon of $ per year and yields on competing instruments are
You would pay $
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