One year past and you received a coupon payment the market


You buy a $1,000 face value bond. It currently has a yield to maturity of 6.69 percent. The bond matures in three years and pays interest annually. The coupon rate is 7 percent = $1008.18. One year past, and you received a coupon payment. The market interest rate(YTM) changed into 6%. What will be the price of the bond now?

Solution Preview :

Prepared by a verified Expert
Finance Basics: One year past and you received a coupon payment the market
Reference No:- TGS02661318

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)