Yield to maturity (YTM) of Bond
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A 10-year Corporate bond is issued with a face value of $100,000, paying interest of $2,500 semi-annually. If market yields decrease shortly after the T-bond is issued, what happens to the bond's:
a. price?
b. coupon rate?
c. yield to maturity?
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Solution Summary
This discusses the Yield to maturity (YTM), Price and coupon rate of a Bond
Solution Preview
Market yield = Annual interest / Market Price,
Yield to maturity (YTM), is the interest rate by which the ...
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