Question: Problem 1 : 1 - An annual bond is issued at par of $ 1 , 0 0 0 today. The coupon rate is 6
Problem :
An annual bond is issued at par of $ today. The coupon rate is and timeto maturity is years. Suppose you buy this bond at market price.
A What is the yieldtomaturity today?
B If one year later, the bond YTM goes up to what is the rate of return for your Investment if you sell the bond on the market then.
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