What is its expected yield to maturity


Discussion Post

• If a government bond is expected to mature in two years and has a current price of $950, what is the bond's YTM if it has a par value of $1,000 and a promised coupon rate of 10 percent? Suppose this bond is sold one year after purchase for a price of $970. What would this investor's holding period yield be?

• A 20-year U.S. Treasury bond with a par value of $1,000 is currently selling for $1,025 from various securities dealers. The bond carries a 6 percent coupon rate with payments made annually. If purchased today and held to maturity, what is its expected yield to maturity?

• How can the discipline of the marketplace be used as a guide for making liquidity management decisions? Explain.

• Briefly discuss the following: Liability Management Highly Rate-Sensitive Volatile.

The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.

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Finance Basics: What is its expected yield to maturity
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