Explore BrainMass

Explore BrainMass

    Compute Present Value

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Suppose you have a coupon bond with a coupon rate 4.5%, face value of $1000 and the bond has 3 years to maturityfrom now. what is the yield to maturity if you purchased the bond for $1000? and what would the price be if the yield to maturity was 10%?

    © BrainMass Inc. brainmass.com February 24, 2021, 2:19 pm ad1c9bdddf
    https://brainmass.com/economics/bonds/compute-present-value-13981

    Solution Preview

    For this bond,
    <br>Payment=4.5%*1000=45
    <br>N=3 years
    <br>If purchased for $1000 ...

    Solution Summary

    What is the yield to maturity within the bond?

    $2.19

    ADVERTISEMENT