What dollar value appears on her statement for the bond

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A bond has 19 years to maturity, a coupon of $50, a par value of $1000 and is trading with at YTM of 8%.

A) What is the Coupon Yield now?

B) With YTM at 8%, what dollar value appears on her statement for the bond? i.e. what is the bond worth now?

The following year, interest rates fall. The bond makes its second $50 payment and has 18 years left. On her brokerage statement the YTM was now 4%.

The bond has 18 years to maturity, a coupon of $50, a par value of $1000 and is trading with at YTM of 4%.

A) After 2 years, what is the Coupon Yield?

B) With YTM at 4%, what dollar value appears on her statement for the value of the bond? i.e. what is the bond worth now?

Reference no: EM131996330

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