Question: Question 2 A firm issues a bond today with a $1,000 face value, an 8% coupon interest rate, and a 25-year maturity. An investor purchases

Question 2 A firm issues a bond today with a $1,000

Question 2 A firm issues a bond today with a $1,000 face value, an 8% coupon interest rate, and a 25-year maturity. An investor purchases the bond for $1,000. (2.1) What is the yield to maturity (YTM)? Explain. (2.2) Suppose the investor bought the bond described previously for $900. What is the YTM? (2.3) Suppose the bond described previously has a price of $1,100 five years after it is issued. What is the YTM at that time

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