Question: If a bond's yield to maturity does not change the return on the bond each year will be equal to the yield to maturity. Confirm

If a bond's yield to maturity does not change the return on the bond each year will be equal to the yield to maturity. Confirm this for both a premium and a discount bond using a 4 year 45 percent coupon bond with annual coupon payments and a face value of $1,000 a. Assume the yield to maturity is 35 percent b. Assume the yield to maturity is 55 percent Complete this question by entering your answers in the tabs below. Required A Required Assume the yield to maturity is 3.5 percent. (Do not round intermediate calculations. Enter Bond price answers to 2 decimal places and "Rate of return founded to 1 decimal place.) Bond price today Band price in one year Rate of return A Required) Chcemy If a bond's yield to maturity does not change the return on the bond each year will be equal to the yield to motally Confirm this for both a premium and a discount bond using a 4 year 4.5 percent coupon bond with annual coupon payments and a face value of $1.000 a. Assume the yield to matuirltys 35 percent b. Assume the yield to maturity is 55 percent Complete this question by entering your answers in the tabs below. Required A Required Assume the yield to maturity is 5.5 percent. (Do not round Intermediate calculations. Enter Bond price answers to 2 decimal places and rate of returrounded to 1 decimal place) Bond price today Hond once in one year Rate of return
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
