An XYZ A bond, with a face value of Sl, 000, a maturity of 25 years (fromissue), and a coupon of 11% per annum, sold at par on issue 10 years ago. Today it would sell for S900 . What was the bond's yield to maturity when it was issued 10 years ago?
An XYZ A bond, with a face value of Sl, 000, a maturity of 25 years (fromissue), and a coupon of 11% per annum, sold at par on issue 10 years ago. Today it would sell for S900 . What was the bond's yield to maturity when it was issued 10 years ago?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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An XYZ A bond, with a face value of Sl, 000, a maturity of 25 years (fromissue), and a coupon of 11% per annum, sold at par on issue 10 years ago. Today it would sell for S900 . What was the bond's yield to maturity when it was issued 10 years ago?
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