Donate SIGN UP
Home > Business & Finance > Bond Pricing

Bond Pricing

Avatar Image
nglowry | 17:54 Thu 16th Sep 2004 | Business & Finance
2 Answers
A 30-year maturity bond with face value $1,000 makes annual coupon payments and has a coupon rate of 8 percent. What is the bond�s yield to maturity if the bond is selling for $1000?
prev House Sale
  
next OH my LAudy
Gravatar

Answers

1 to 2 of 2rss feed

Best Answer

No best answer has yet been selected by nglowry. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.
-- answer removed --
Avatar Image Hammer
The Flat Yield and the Japanese Gross Redemption Yield are both 8% (which I think is what you probably need). If the bond is priced at nominal value, there is no capital gain, just the income flow. Hence yield = coupon.
13:02 Fri 17th Sep 2004

1 to 2 of 2rss feed

Do you know the answer?

Bond Pricing

Answer Question >>

Related Questions

Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.