(SOLVED) A 2 year maturity bond with 1 000 face value makes annual


Question Description:

$19

A 2-year maturity bond with $1,000 face value makes annual coupon payments of $65 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is
a. 6%?
b. 8%?
c. 10%?

Answer

$19