Bond Assignment | Professional Writing
1. A 30 year 7% coupon (semiannual) bond sells for $1,200, what is the bond holder’s YTM? 2. If a 30-year zero coupon bond sells for $250, what is the bond’s YTM?
3. 5 year ago, the bond issuer issued a 30-year 7% semiannual bond when the market interest rate was 6%. 5 years later, the interest rate changes to 8%, so what is the rate of return for this bond for the last 5 years?
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