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Bond Pricing

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nglowry | 16:54 Thu 16th Sep 2004 | Business & Finance
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A 30-year maturity bond with face value $1,000 makes annual coupon payments and has a coupon rate of 8 percent. What is the bond�s yield to maturity if the bond is selling for $1000?
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The Flat Yield and the Japanese Gross Redemption Yield are both 8% (which I think is what you probably need). If the bond is priced at nominal value, there is no capital gain, just the income flow. Hence yield = coupon.
12:02 Fri 17th Sep 2004

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