2. What are
3. Suppose you
see the following bond price quote in the newspaper:
McDonalds 5.7% 2039……..122.733
What can you tell about this bond from
reading the price quote?
the present value of a bond) If a
corporate bond with a face value of $1,000 has 24 years to go until it matures,
has a coupon interest rate of 5.7% and a yield to maturity (YTM) of 4.201%,
what should be its price in the bond market (ie, PV)?