What is the resulting YTM for this bond?
In January of 2005, the country of Greeze issued 10-year, 8% coupon bonds, with interest paid annually on 12/31. The bonds sold at par on 1/1/2005. On 12/31/2005, Greeze paid the required interest, but then announced that they had no intention of paying the rest of what they owed. Greeze said that going forward, they would pay only 4% for the remaining 9 years. And […]