a. The 8.5%, twenty-year bond yields 6,5%. If this yield to maturity remains unchanged, what will...
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a. The 8.5%, twenty-year bond yields 6,5%. If this yield to maturity remains unchanged, what will be its price one year hence? Assume annual coupon payments and a face value of $1,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price b. What is the total return to an investor who held the bond over this year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Total return % a. The 8.5%, twenty-year bond yields 6,5%. If this yield to maturity remains unchanged, what will be its price one year hence? Assume annual coupon payments and a face value of $1,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price b. What is the total return to an investor who held the bond over this year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Total return %
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Answer rating: 100% (QA)
a To calculate the price of the bond one year hence we need to consider the change in yield to matur... View the full answer
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
Posted Date:
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