A bond with a face value of $1,000 has 14 years until maturity, carries a coupon rate of 6.6%, and sells for $1,079. a. What
A bond with a face value of $1,000 has 14 years until maturity, carries a coupon rate of 6.6%, and sells for $1,079. a. What is the yield to maturity if interest is paid semiannually? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.) 2.88% is not correct and neither is -.2651%. I don't understand? Does anyone have the correct answer?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Mark Aarons, Vlad Ender, Andrew Wilkinson
1st Edition
1119532272, 978-1119532279
