You buy a(n) 5 5 coupon, 8 year maturity bond for $985 A year later, the bond price is $1,160 Assume coupons are paid once a year and the face value is $1,000 a What is the new yield to maturity on the bond (one year from now) (Do not round intermediate calculations Round your answer to 2 decimal p...

a To find the new yield to maturity YTM on the bond one year from now we can use the followi ...

You buy a(n) 5.5% coupon, 8-year maturity bond for $985. A year later, the bond price is

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You buy a(n) 5.5% coupon, 8-year maturity bond for $985. A year later, the bond price is $1,160. Assume coupons are paid once a year and the face value is $1,000.

a.	What is the new yield to maturity on the bond (one year from now)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b.	What is your bond's rate of return over the year? (Round your answer to 2 decimal places.)

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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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Posted Date: Feb 28, 2024 11:23 PM

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You buy a(n) 5.5% coupon, 8-year maturity bond for $985. A year later, the bond price is

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a To find the new yield to maturity YTM on the bond one year from now we can use the followi... View the full answer

Fundamentals of Corporate Finance

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