What will be the total amount of payments you will have


1. A bond has a par value of $1,000, a market price of $800, and a 6% coupon rate. It will mature in 5 years. What is the current yield of the bond?

What will be the yield to maturity? YTM _________%

2. Suppose that you have a bond that has a par value of $1,000 and a coupon interest rate of 6.5%. Its current price is $900 and it will mature in 7 years and pays annually. What is the yield to maturity?

What will be the total amount of payments you will have received on this bond if you hold it to maturity (including return of principal)?

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Financial Management: What will be the total amount of payments you will have
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