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olivecrab193Lv1
28 Sep 2019
IBM is offering a 10-year bond, with the face value of $1000 and a coupon rate of 11% paid semi-annnually. The current annual interest is 4.5%.
A. Calculate the price of the bond.
B. If the bond trades for $1,100 calculate yield to maturity (YTM)
C. Find the interest rate, udner which the bond trades at par.
IBM is offering a 10-year bond, with the face value of $1000 and a coupon rate of 11% paid semi-annnually. The current annual interest is 4.5%.
A. Calculate the price of the bond.
B. If the bond trades for $1,100 calculate yield to maturity (YTM)
C. Find the interest rate, udner which the bond trades at par.
Elin HesselLv2
28 Sep 2019