Calculate the market value (in dollars) of the following bond using the present value formula. Maturity is
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Question:
Maturity is exactly four years from today.
The Par Value is $1,000
The Coupon Rate is 3.00%. Coupon Payments are made semi-annually.
The current YTM is 4.00%.
Referencing your answer to first question , what is the market value (in $) of the bond if;
The YTM rises from 4.00% to 4.25%.
The YTM declines from 4.00% to 3.50%
Calculate the following on a bond that has a $1,000 Par Value, matures in exactly one (1) year, has a Coupon Rate of 1.75% with Coupon Payments made annually, and current market value is $990.00;
The Current Yield
The Yield-to-Maturity (YTM)
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259722615
9th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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