Yield, Price, and YTM
A corporate bond maturing in 15 years with a coupon rate of 9.9 percent was purchased for $940 and it now selling for $960.
What is its current yield? Round your answer to one decimal place. %
What will be its selling price in two years if comparable market interest rates drop 1.9 percentage points? (Hint: Use Appendix A-2 and Appendix A-4 or theGarman/Forgue companion website.) Round Present Value of a Single Amount and Present Value of Series of Equal Amounts in intermediate calculations to four decimal places. Round your answer to the nearest cent. $
Calculate the bond's YTM using Equation 14.5 or the Garman/Forgue companion website. Round your answer to two decimal places. %