What is the realized compound yield from the bond if you


You have just bought a 5 year 10% annual coupon bond with a par value of $1000 at a price of $963.04.

1) What is the YTM of the bond?

2) Immediately after you bought the bond, the market interest rate changed to 8% per year. If the interest rate does not change from this level for the next 5 years, what is the realized compound yield from the bond if you hold it until maturity?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the realized compound yield from the bond if you
Reference No:- TGS02319078

Expected delivery within 24 Hours