Given- the bond has a 2500 dollar lump sum the par value
Given- the bond has a 2500 dollar lump sum (the Par Value) due at maturity. T=20 and annual 250 dollar coupon payments beginning at T=1 and continuing through T=20. The YTM is 20%. Question. What is the price of the bond?
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given- the bond has a 2500 dollar lump sum the par value due at maturity t20 and annual 250 dollar coupon payments
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given the annual coupon rate is 130 since the risk is the same it has the same yield to maturity as the previous bond
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