A bond has a $1,000 par value, 20 years to maturity and a 5% annual coupon...

Question

Question

A bond has a $1,000 par value, 20 years to maturity and a 5% annual coupon and sells for $860.

a. YTM= 6.24% (This is correct, need help with part B)

b. Assume that the YTM remains constant for the next 3 years. What will the price be 3 years from today?

business finance

Answer 1

Answer #1

Answer 2

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