The 8 percent coupon bonds of the ABC Company. are selling for 98 percent of par value. The bonds mature in 5 years and pay interest semi-annually. Find YTM.
One year ago, the ABC Company issued 20-year bonds at par. The bonds have a coupon rate of 5 percent and pay interest annually. Today, the market rate of interest on these bonds is 5.6 percent.
How does today’s price of this bond compare to the issue price? (Answer the percent price change)