The coupon rate of the bond is 5% with annual coupons and the yield to maturty is 3%
a. What can you say about the price of the bond?b. What is the price of the coupon if it is a 10-year bond with a face value of 5,000?c. What is the one-year Rate of return (RET) on the 10-year bond (face value o 5000) if the yield to maturity raised to 6%? (Hint: calculate the price of the bond after one year and then proceed)
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here