Suppose you purchase a bond that has an 8,5% annual payment coupon. The bond has a par value of R1 000 and a maturity of 25 years, for R925. If the yield to maturity on the bond remains unchanged, what will be the price of the bond five years from now? 1. R 320,91 2. R 663,64 3. R 930,20 4. R1 953,15

Suppose you purchase a bond that has an 8,5% annual payment coupon. The bond has a par value of R1 000 and a maturity of 25 years, for R925. If the yield to maturity on the bond remains unchanged, what will be the price of the bond five years from now? 1. R 320,91 2. R 663,64 3. R 930,20 4. R1 953,15

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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