4 Suppose you have a bond with the following characteristics: Current Price (P 0 ) = $960...

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4	Suppose you have a bond with the following characteristics:

	Current Price (P₀) =	$960	Seeing this price to par value relationship (price is lower), what do you expect the YTM to be compared to the 3% coupon rate? Higher or Lower?
	Par Value =	$1,000
	Coupon Rate =	3%
	# of years to maturity =	10

	What is the yield-to-maturity (YTM) for this bond?


	a.	2.5%
	b.	3.0%
	c.	3.5%


	Answer:

	Calculate Coupon =
	YTM =		Use the Rate function

Related Book For answer-question

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Fundamentals of Investments, Valuation and Management

Fundamentals of Investments, Valuation and Management

ISBN: 978-1259720697

8th edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Posted Date: Mar 10, 2024 04:42 AM

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