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A 10-year, 5% coupon, $100 face value bond with annual coupons is worth $102. Which formula below can be used to compute its yield to
A 10-year, 5% coupon, $100 face value bond with annual coupons is worth $102. Which formula below can be used to compute its yield to maturity? o a. 102=YTM*(0.05 0.05(1 +0.05)20 )+ (1 + YTM)20 ob. 100 =5x (1- 1at_102 ob-T YTM YTM(1 + YTM)10 )*(1 + YTM)10 (1 + YTM)10-1 102 100 = 5x = + YTM (1 + YTM)0 + (1 + YTM)10 - 1 100 d. 102=5 x - YTM *(1 + YTM10 100 YTM YTM(1 + YTM)10) (1 + YTM)10 Oe 04.102=5 (YTM Yemca vamzo) + ( +47
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