Ask Experts Questions for FREE Help !
Ask
    paranee's Avatar
    paranee Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Nov 5, 2010, 10:03 PM
    yield to Maturity
    a bond has a $1,000 per value, 10 years to maturity, and a 7% annual coupon and sells for $985.
    a. What is its yield to maturity (YTM)?
    b. Assumne that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today?
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
    Ultra Member
    		  
    #2

    Nov 6, 2010, 01:02 PM

    Is this homework? If so, please show your work. We don't just do homework, but we can tell if where you have gone right or wrong. Thanks.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Yield to maturity [ 4 Answers ]

You buy an 8-year bond at exactly three quarters of the way through its fifth year. Its price is 110 (i.e 10% over par) plus the interest accrued since the last coupon was paid. The coupon is 8% per year, payable every six months. What is the yield to maturity?

Yield To Maturity [ 2 Answers ]

Explain the concept of yield to maturity based on purchasing a 10% bond but the broker kept repeating that it had a 9% yield to maturity?

Yield to maturity [ 1 Answers ]

A coworker of yours was discussing her investments with a broker. Your coworker was confused because she had purchased a 10% bond but the broker kept repeating that it had a 9% yield to maturity.

View more questions Search