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5% Coupon 10% Coupon 15% Coupon Average Yield-to-Maturity of 5 Years to Maturity Bonds ____ 9.01% 9.03% Average Yield-to-Maturity of 8 Years to Maturity Bonds
5% Coupon | 10% Coupon | 15% Coupon | |
Average Yield-to-Maturity of 5 Years to Maturity Bonds | ____ | 9.01% | 9.03% |
Average Yield-to-Maturity of 8 Years to Maturity Bonds | 9.47% | . | 9.28% |
I am having trouble finding the missing value for Maturity 5 through linear interpolation.
YTM, x = 9.01% + [ (15-10)/(15-5) * (9.03%-x) ]
I saw this solution but I have no idea when they got the answer 8.99% from that. Please help
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