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What does the yield to maturity of the bond depend on

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Reference no: EM132999916

Green bonds are bonds issued by a company to fund renewable energy projects. Kuzlon India had raised financing for investing in wind power
projects by issuing green bonds with ten years as a time to maturity. The green bonds were semi-annual bonds with an 8% p.a. (compounded
semi-annually) coupon rate AAA rated, The Face value (par value) of the bond was 1000. Since these bonds enabled capital raising for
projects with environmental benefits, the green bonds were issued at a premium. The yield to maturity of the bond was 6% p. a compounded
semi-annually,

Problem 1: What is the price of the bond today? What does the yield to maturity of the bond depend on?

Reference no: EM132999916

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