A 10,000 face value coupon bond is bought on 2/10/2020 and matures in two years on...
A 10,000 face value coupon bond is bought on 2/10/2020 and
matures in two years on 3/1/2022. It pays an annual coupon payment
of $260 and has a current yield to maturity of 1.131%
What is the current selling price?
Homework Answers
The values of YTM, face value, time to maturity, and annual coupon payment are given. By using YTM shortcut formula we are able to find the value of current selling price as shown in the images below. Its value is found to be $10,292 (approximated without decimals).
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A 10,000 face value coupon bond is bought on 2/10/2020 and
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7.6
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7.6
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