A 2-year bond with par value $1,000 making annual coupon payments of $100 is priced at $1,000. What is the yield to maturity of the bond? What will be the realized compound yield tomaturity if the 1-year interest rate next year turns out to be (a) 8%, (b) 10%, (c) 12%?
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here