ICEE Company's bond has 8 years remaining to maturity and a coupon rate of 7%. What is the yield to maturity of the bond if the current market price is $1030?

  a. What is the return if I buy this bond? 12 years to maturity 1000 par 10% coupon Bond selling price is $850

b. What is the return if I buy this bond? 8 years to maturity 1000 par 10% coupon Bond selling price is $850

c. What is the return if I buy this bond? 20 years to maturity 1000 par 10% coupon Bond selling price is $850

d. What conclusion can I draw about the time to maturity relative to yield for bonds selling at a discount?

e. What is the return if I buy this bond? 12 years to maturity 1000 par 10% coupon Bond selling price is $1050

Answer rating: 100% (QA)

To calculate the yield to maturity YTM of a bond you can use the following formula YTM C fracF PnF P... View the full answer