A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon...

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A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon...

A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon and sells for $1,110.

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 5 years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

$

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Answer 1

Answer #1

1 2 Par Value 3 Coupon Rate 4 Current Value 5 Years to Maturity 6 Frequency $1,000 8.00% $1,110.00 20 1 annual 6.96% 8 YTM 9 1000 0.08 1110 annual 1 2 Par Value 3 Coupon Rate 4 Current Value 5 Years to Maturity 6 Frequency 7 8 YTM 9 10 After 5 years

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Answer 2

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