What would be the bonds price if a comparable debt yields 8


A $ 1000 bond has a coupon of 6 % and matures after 10 years

  1. What would be the bond's price if a comparable debt yields 8 percent
  2. What would be the price if comparable debt yields 8 percent and the bond matures after 5 years
  3. What are the price differences with 1 and 2?
  4. What are the current yields and yields to maturity in 1 and 2?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What would be the bonds price if a comparable debt yields 8
Reference No:- TGS02528425

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)