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A 10-year, $1000 face value bond sells for $925 and has an

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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?

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).


Please click here for the excel sheet with all calculations



Customer: replied 8 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!

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


Please click here



Customer: replied 8 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!

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