Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. yield to maturity and future price a bond has a $1

Yield to maturity and future price A bond has a $1,000 par value, 15 years...

80.2K

Verified Solution

Question

Accounting

Yield to maturity and future price

A bond has a $1,000 par value, 15 years to maturity, and a 8% annual coupon and sells for $1,080.

What is its yield to maturity (YTM)? Round your answer to two decimal places. %

Assume that the yield to maturity remains constant for the next 2 years. What will the price be 2 years from today? Round your answer to the nearest cent. $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the value of each variable 11 x 13 y y 15 x y 10...

Geometry
Q

Dr. Mack Lemore, an expert in consumer behavior, wants to estimate the average amount of money...

Basic Math
Q

Directions Answer each of the following questions citing textual evidence Remember to answer all parts...

Biology
Q

Find the scale factor of a prism with the surface area of 81 m to...

Geometry
Q

Betty DeRose, Inc. operates two departments, the handling department and the packaging department....

Accounting
Q

Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Selling...

Accounting
Q

Kathy Little and her sister Julie are considering starting an online business selling custom made...

Accounting
Q

El inventario inicial, las compras y las ventas del artculo ER27 son los siguientes: ...

Accounting
Q

6 I. Sime Darby Plantation (80 points) Sime Darby Plantation is one of...

Accounting
Q

The risk that an auditor will conclude, based on substantive procedures, that a material error...

Accounting
Q

The Bandage Medical Supply Company has two divisions that operate independently of one another. The...

Accounting
Q

alculate the Macaulay duration today for the following bond: original 30 years term to maturity...

Finance