Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you own a bond with the following features: 10 yea

You own a bond with the following features: 10 years to maturity, face value of $1000,...

90.2K

Verified Solution

Question

Finance

You own a bond with the following features: 10 years tomaturity, face value of $1000, coupon rate of 4% (annual coupons)and yield to maturity of 4.8%. If you expect the yield to maturityto remain at 4.8%, what do you expect the price of the bond to bein two years?

Answer & Explanation Solved by verified expert
4.1 Ratings (547 Votes)
Price of the Bond in two years The Price of the Bond is the Present Value of the Coupon Payments plus the Present Value of the Face ValuePar Value The Price    See Answer
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

Transcribed Image Text

You own a bond with the following features: 10 years tomaturity, face value of $1000, coupon rate of 4% (annual coupons)and yield to maturity of 4.8%. If you expect the yield to maturityto remain at 4.8%, what do you expect the price of the bond to bein two years?

Other questions asked by students

Q

III. A health-food store stocks two different brands of certain type of grain. Let X =...

Statistics
Q

Place the correct word into the sentence to describe the muscles of respiration. a. elevate b. depress c. flex d....

Medical Sciences
Q

An ideal Otto cycle uses air as the working fluid; its state at the beginning of...

Mechanical Engineering
Q

Ho n n transparent slabs are arranged one on top of each other The refractive...

Physics
Q

ghtly loose to a wire frame as in figure and the frame is dipped into...

Physics
Q

Q 2 A fixed long thin wire carrying current I lies along the x axis...

Physics
Q

For a metallic conductor if p is resistivity at T and po is resistivity at...

Physics
Q

1 A Liquid limit tests results are given below Number of blows N TEST Liquid...

Basic Math
Q

States differ widely in the percentage of college students who are enrolled exclusively in distance...

Statistics
Q

(Ignore income taxes in this problem.) Shields Company has gathered the following data on a...

Accounting
Q

Cox Electric makes electronic components and has estimated the following for a new design of...

Accounting
Q

Daniels Consulting had purchased a computer, S3,600, and office furniture, S3,000, on December 1, 2017,...

Accounting