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27 Feb 2019

You have been asked to value a bond that has a coupon of 3.00%, a maturity of 14 years, a par value of $100,000, and a yield to maturity of 3.25%. What is the current price of the bond? In one year the bond is priced to yield 3.50%, what would be the price at that time? What is the return from holding the bond for the first year? Note: all bonds are assumed to be semi annual coupon payments unless otherwise stated.

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Sixta Kovacek
Sixta KovacekLv2
28 Feb 2019

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