Xcel Energy has $300 million of 6.5% coupon bonds outstanding. The bonds mature in 2036 (assume...
Xcel Energy has $300 million of 6.5% coupon bonds outstanding. The bonds mature in 2036 (assume exactly 18 years from today), have a face value of $1,000, pay interest semi-annually and are currently priced at $1,325.72.
What is this bond’s current YTM? Show as a % to two decimal places.
If market rates for bonds of this quality and maturity change to 4.10% what will the bond’s price change to?
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