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A zero-coupon bond with $1000 face value has 10-year to maturity. If this bond is currently...

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Finance

A zero-coupon bond with $1000 face value has 10-year tomaturity. If this bond is currently trading at $463.20. What isthis bond’s YTM (i.e., required rate of return)?

What is the coupon rate for a bond with threeyears until maturity, a price of $953.46, and a yield to maturityof 6%? Assume the bond’s face value is $1,000.

Kodak has a bond with 10 year until maturity, a coupon rate of10%, and selling for $1,200. This bond pays coupon paymentannually. What is the yield to maturity of this bond?

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We need to use financial calculator for YTM and coupon rate with below key strokes YTM of zerocoupon bond N no of years 10 PMT annual interest 0 PV present    See Answer
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Transcribed Image Text

A zero-coupon bond with $1000 face value has 10-year tomaturity. If this bond is currently trading at $463.20. What isthis bond’s YTM (i.e., required rate of return)?What is the coupon rate for a bond with threeyears until maturity, a price of $953.46, and a yield to maturityof 6%? Assume the bond’s face value is $1,000.Kodak has a bond with 10 year until maturity, a coupon rate of10%, and selling for $1,200. This bond pays coupon paymentannually. What is the yield to maturity of this bond?

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