a. The ten-year bond yields 5.1% and has a coupon of 7.1%. If this
yield to maturity remains unchanged, what will be its price one year
hence? Assume annual coupon payments and a face value of $100.
(Do not round intermediate calculations. Round your answ
Mexican Motors market cap is 400 billion pesos. Next years free
cash flow is 9.4 billion pesos. Security analysts are forecasting that
free cash flow will grow by 8.4% per year for the next five years.
a. Assume that the 8.4% growth rate is expected to co
Assume coupons are paid annually. Here are the prices of three
bonds with 10-year maturities:
Bond Coupon (%)
a. What is the yield to maturity of each bond? (Do not round
intermediate calculations. Enter your answers as