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The Question
A European bond has a par value of 1000 Euros, a coupon rate of 3.9 percent and a yield to maturity of 3.2 percent. The bond has 19 years to maturity. Coupons are made annually. What is the value of the bond?
ABC Inc. has 5.0 percent coupon bonds on the market with 9 years to maturity. The bonds make semi-annual payments and currently sell for 110 percent of par. What is the YTM?
Thank you for your help if you can
Par value
Coupon rate
YTM
Years to maturity
Bond value ? 1,000.00
3.90%
3.20%
19
? 1,098.51 Coupon rate
Years to maturity
Par value
Price
YTM 5%
9
100%
110%
3.68%
Solution details
Solution #00070128
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STATUSAnswered
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DATE ANSWEREDOct 14, 2020
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