A two-year bond with par value 1000 making annual coupon


A two-year bond with par value $1,000 making annual coupon payments of $99 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Yield to maturity % b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 7.9%, (b) 9.9%, (c) 11.9%?(Do not round intermediate calculations. Round your answers to 2 decimal places.) Interest Rate Realized YTM 7.9% % 9.9% % 11.9% %

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A two-year bond with par value 1000 making annual coupon
Reference No:- TGS01465680

Expected delivery within 24 Hours