A what was the yield to maturity of xyzs bonds on february


XYZ company issued a new series of 10-year bonds on February 1, 2010. The bonds were sold at par of $1,000 and have a 12% coupon payable annually.

a. What was the yield to maturity of XYZ's bonds on February 1, 2010?

b. What was the value of the bond on February 1, 2013, assuming that the market interest rate had fallen to 10% p.a.?

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