Describe two reasons the yield-to-maturity

Reference no: EM133223750

Question 1: What is the current (today) price of a bond with face value of $5,000, with an annual 12% coupon rate that pays the coupons on a monthly basis, if the current (today) yield-to-maturity, expressed on a monthly basis, is 1%, and the bond matures two years from today?

Question 2: Describe two reasons the yield-to-maturity (YTM) of a bond might increase. What will happen to the price of the bond when the YTM increases?

Reference no: EM133223750

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