Had the bond been selling at 88950 what would be the ytm


A company has 9% coupon (compounded semiannually) bonds on the market with a 10 years to maturity and the par value of 1,000. At what price should the bonds be selling for if ytm is 7%? Had the bond been selling at 889.50 what would be the ytm? Based on your answers what is the relationship between ytm and bond price?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Had the bond been selling at 88950 what would be the ytm
Reference No:- TGS02770070

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)