Calculate the yield to maturity for a corporate bond issued by DaimlerChrysler with the price of $800.20,
Fantastic news! We've Found the answer you've been seeking!
Question:
- Calculate the yield to maturity for a corporate bond issued by DaimlerChrysler with the price of $800.20, where the bond has a maturity of 11 years, a face value of $1,000, and an annual interest payment is $70. Assume that interest payments are made annually at the end of each year. What is the future value of the corporate bond?
- a. Should the interest rates decrease to 3%, how many years does the bond take to mature?
- b. If the interest rate decreases to 7%, what should be the annual interest payment for the bond to be sold at the same price of $800.20?
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date: