Assume you bought a 10%, 25 year bond at 842 Br with a promised yield to maturity of 12%. You expect the bond’s yield to maturity...

      

Assume you bought a 10%, 25 year bond at 842 Br with a promised yield to maturity of 12%.
You expect the bond’s yield to maturity to decline 8% in 5years. What will be the price of the
bond in 5 years, if the bonds par value is 1000Br?

  

Answers


Ruth
09022022112fig7.png
NatalieR answered the question on February 9, 2022 at 12:28


Next: Exclusively discuss component cost of capital
Previous: An 18 year bond with 6% coupon and a par value of 1000Br paying interest semiannually is selling for 700.89Br. Calculate the yield on the bond.

View More Financial Management I Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions