Professional Documents
Culture Documents
Chapter 6
Chapter 6
Interest Rates
And Bond
Valuation
Table 6.1
Debt-Specific
Issuer- and
Issue-Related
Risk Premium
Components
The Mills Company bond, which currently sells for $1,080, has a
10% coupon interest rate and $1,000 par value, pays interest
annually, and has 10 years to maturity. What is the bond’s YTM?
Table 6.8
Summary of Key
Valuation
Definitions and
Formulas for Any
Asset and for
Bonds