Suppose a seven-year 1000 bond with a 545 coupon rate and


Suppose a? seven-year, $1,000 bond with a 5.45% coupon rate and semiannual coupons is trading with a yield to maturity of 3.58%.

If the yield to maturity of the bond rises to 4.55% (APR with semiannual? compounding), at what price will the bond? trade?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Suppose a seven-year 1000 bond with a 545 coupon rate and
Reference No:- TGS02517256

Now Priced at $10 (50% Discount)

Recommended (94%)

Rated (4.6/5)