What is the ytm of the bond today

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1) A corporate bond has a face value of $1,000 and an annual coupon interest rate of 7 percent. Interest is paid annually. Of the original 20 years to maturity, only 10 years of the life of the bond remain. The current market price of the bond is $872. To the nearest whole percent, what is the YTM of the bond today?

2) After a major earthquake, the San Francisco Opera Company is offering zero coupon bonds to fund the needed structural repairs to its historic building. Buster Norton is considering the purchase of several of these bonds. The bonds have a face value of $2,000 and are scheduled to mature in 10 years. Similar bonds in the market have an annual YTM of 12 percent. If Mr. Norton purchases three of these bonds today, how much money will he receive 10 years from today at maturity?

Reference no: EM132411141

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