Question
A bond has a coupon rate of 3%, pays interest semiannually, sells for $950, and matures in 3 years. Face value=1000 a) Calculate the approximate
A bond has a coupon rate of 3%, pays interest semiannually, sells for $950, and matures in 3 years. Face value=1000
a) Calculate the approximate YTM (yield to maturity).
b) Calculate the YTM, using a financial calculator.
c) What is the difference between the approximate YTM and the Real YTM in (b)?
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The Company Valuation Playbook Invest With Confidence
Authors: Charles Sunnucks
1st Edition
1838470816, 978-1838470814
