Question
A coupon bond which pays interest of 4% annually, has a par value of $1,000, matures in 5 years, and is selling today at $785.
A coupon bond which pays interest of 4% annually, has a par value of $1,000, matures in 5 years, and is selling today at $785. The actual yield to maturity on this bond is _________.
Can you please explain. Without financial calculations. Please do it step-by-step. Thank you
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
