You are on page 1of 2

What is the price of a 10-year Bond with US$ 1,000 par value and 10.00%p.a.

coupon rate (nominal) paid annually, at annual rate of return (rd) of 5.00%? What is the yield to maturity (YTM) of the same bond (10-year period, US$ 1,000 par value, 10.00%p.a. coupon rate (nominal) paid annually) that is currently sells at US$1,200?

What is the price of a 10-year Bond with US$ 1,000 par value and 10.00%p.a. coupon rate (nominal) paid semi-annually, at annual rate of return (rd) of 5.00% ? What is the effective annual rate? What is the yield to maturity (YTM) (in annual term) of the same bond (10-year period, US$ 1,000 par value, 10.00%p.a. coupon rate (nominal) paid semi-annually) that is currently sells at US$1,200?

You might also like