What will be its selling price in two years

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Yield, Price, and YTM

A corporate bond maturing in 15 years with a coupon rate of 9.9 percent was purchased for $940 and it now selling for $960.

What is its current yield? Round your answer to one decimal place. %

What will be its selling price in two years if comparable market interest rates drop 1.9 percentage points? (Hint: Use Appendix A-2 and Appendix A-4 or theGarman/Forgue companion website.) Round Present Value of a Single Amount and Present Value of Series of Equal Amounts in intermediate calculations to four decimal places. Round your answer to the nearest cent. $  

Calculate the bond's YTM using Equation 14.5 or the Garman/Forgue companion website. Round your answer to two decimal places. %

Reference no: EM132020267

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