You have a subordinated bond with a face value of $1,000, a coupon rate of 9%, and a remaining maturity of 5 years.
-Current market price is $1,126.37. What is the current yield to maturity?
-One year later, the yield to maturity increases by 2%. What is the current market price of the bond?
-One more year passes. The yield to maturity has decreased 1% in the past year. What is the current market price of the bond?
-At maturity, what do you receive?