Question
A 23 year, 4.8%, $1,000 bond that pays interest semiannually is selling for $942.40. What is the YTM on this bond? Then indicate how we
A 23 year, 4.8%, $1,000 bond that pays interest semiannually is selling for $942.40. What is the YTM on this bond? Then indicate how we interpret the YTM on a bond? What is the bonds Current Yield (not to be confused with the YTM)? Why do the YTM and CY differ for this bond?
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Bond Markets Analysis And Strategies
Authors: Frank J.Fabozzi
7th Edition
0136078974, 978-0136078975
