5. You have just purchased an outstanding 10-year bond with a par value of $1,000 for $1,145.68. Its annual coupon payment is $75. What is the bond's yield to maturity?

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
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5. You have just purchased an outstanding 10-year bond with a par value of $1,000
for $1,145.68. Its annual coupon payment is $75. What is the bond's yield to
maturity?
Transcribed Image Text:5. You have just purchased an outstanding 10-year bond with a par value of $1,000 for $1,145.68. Its annual coupon payment is $75. What is the bond's yield to maturity?
4. Your friend purchased an outstanding bond with a 6% annual coupon and a
remaining maturity of 10 years. The bond has a par value of $1,000, and the
market rate is currently 6.75%. How much did your friend pay for the bond? Is it a
par, premium, or discount bond?
Transcribed Image Text:4. Your friend purchased an outstanding bond with a 6% annual coupon and a remaining maturity of 10 years. The bond has a par value of $1,000, and the market rate is currently 6.75%. How much did your friend pay for the bond? Is it a par, premium, or discount bond?
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