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Manal Elkhoshkhany, Tutor
Category: Homework
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# A 10-year, \$1000 face value bond sells for \$925 and has an

### Resolved Question:

A 10-year, \$1000 face value bond sells for \$925 and has an 8% annual coupon rate. 1) What is the bond's current yield? 2) What is the bond's yield to maturity? 3) Assume that the YTM remains constant for the next three years. What will be the price of the bond three years from today?
Submitted: 7 years ago.
Category: Homework
Expert:  Manal Elkhoshkhany replied 7 years ago.

Hello again :)

Your answers are correct. As for part 3, after 3 years, the time to maturity will be 7 years, and as you know, the price of the bond equals the present value of all future cash flows (that includes the PV of Coupon Payments + Present Value of the Face Value).

Regards,

Customer: replied 7 years ago.
Greetings! Your spreadsheet did not appear to upload all of the functions correctly? In the Yield To Maturity (B17, B24) and also the Price block (B27), instead of a number, it says "#NAME?", so I am unable to view the answers in those... could you reupload, please? thank you so much!
Expert:  Manal Elkhoshkhany replied 7 years ago.

Sorry about that, although when I opened it, all figures showed , PC's are STRANGE :)

Regards,

Customer: replied 7 years ago.
Still having the same problem- tried opening it from another computer, but with the same results. Could you just tell me what you got for the yield to maturity and the price of the bond three years from now, since those are the only two blocks that aren't showing in the spreadsheet? Then I can figure it out from there... :) Thanks!
Expert:  Manal Elkhoshkhany replied 7 years ago.

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Manal Elkhoshkhany, Tutor
Category: Homework
Satisfied Customers: 9724
Experience: More than 5000 online tutoring sessions.

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