(a) Suppose you buy a 20-year, zero-coupon bond with a 10% yield to maturity. The bond with a face value of $800 was initially

(b) If the bond's yield-to-maturity changes to 12%, what will its price be five years later?

Cranston Industries just issued a $1,000 30-year bond. The bonds sold for $1,107.20 and pays interest every six months. Investors demand a 7.75% rate on bonds. What is the bond coupon rate?

(c) If you buy the bond at $118.91 and sell it after 5 years, what will be the return on investment?

Answer rating: 100% (QA)

a The yield to maturity of a zerocoupon bond with a face value of 800 and a 10 yield to maturity is ... View the full answer