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Yield to maturity and future price
A bond has a $1,000 par value, 10 years to maturity, and a 8% annual coupon and sells for $980.
What is its yield to maturity (YTM)? Round your answer to two decimal places.
%
Assume that the yield to maturity remains constant for the next 4 years. What will the price be 4 years from today? Round your answer to the nearest cent.
$
The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow of $90,000 for the firm during the first year, and th..
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A newly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public at a price of $860. The bond will not be sold at the end of the year. The bond is treated as an original-issue discount bond. Calculate the constant y..
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A futures is currently at $75. The risk free interest rate is 6.5% p.a. compounded monthly. The volatility of the futures price is 30% p.a. continuously compounded. Using binomial option pricing model, what is the value of 6-month American call optio..
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