At what yield-to-maturity did you originally buy the bond

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Reference no: EM131985961

Exactly 15 years ago, you purchased a $1,000 par value bond with 30 years to maturity for $945. The bond pays its 7% coupon semi-annually.

a) At what yield-to-maturity did you originally buy the bond?

b) If the present market rate on identical bonds is 4.5% (compounded semi-annually), at what price should the bond trade today?

c) What is the current yield on the bond?

Reference no: EM131985961

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