The price of a 5 year 9 12 bond that is being priced to


Question: The price of a 5 year, 9 1/2% bond that is being priced to yield 12%. The par value is assumed to be $ 1,000. Before any calculation what is the price of this bond in relation to par value? How do we know? Finally what is the yield-to maturity if an investor pays $ 1250 for this bond.

Before any calculation what is the price of this bond in relation to par value? How do we know?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The price of a 5 year 9 12 bond that is being priced to
Reference No:- TGS02844654

Expected delivery within 24 Hours