The yield to maturity remains constant for next three years

Assignment Help Financial Management

Reference no: EM132019156

A bond has a $1,000 par value, 10 years to maturity, and a 8% annual coupon and sells for $980.

a. What is its yield to maturity (YTM)? Round your answer to two decimal places.

b. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM132019156

Questions Cloud

Prepare a balance sheet listing the accounts : Once complete, prepare a Balance Sheet listing the accounts and account balances in the appropriate order. (Keep in mind that Net Income Increases the Owner's).

Calculate the two projects npvs : Calculate the two projects' NPVs. What is the project's MIRR at r = 6%?

Identify a publicly traded corporation and discuss about it : Research the corporation on its own Website, the public filings on the Securities and Exchange Commission EDGAR database.

Write about five accounting-related topics : Please write about any two topics in the letter that you find interesting. Then write about five accounting-related topics that Buffett speaks to in the letter.

The yield to maturity remains constant for next three years : What is its yield to maturity (YTM)? Assume that the yield to maturity remains constant for the next 3 years.

Is currency swap contract debt obligation : Is a currency swap contract a debt obligation that involves a borrower and a lender? Why or Why not?

Discuss about the cultural environments facing business : Summarize either a magazine, blog, or newspaper article published within the last three months, or a journal article published within the last year.

How should teachers deal with aggressive children : Should it vary with the reasons for children's aggression? Why or why not? What should they suggest to parents who have aggressive children?

The difference between simple interest and compound interest : With regards to money: What are the differences between future value and present value?What are the differences between simple interest and compound interest?

User Account

All Pages