Question
A sovereign bond that matures on 1 January 2030 pays an annual coupon of 1.2% and has a face value of 100. For a trade
A sovereign bond that matures on 1 January 2030 pays an annual coupon of 1.2% and has a face value of 100. For a trade settlement date of 1 January 2020, the bonds are priced at 128. Assume an actual/actual day count. What is the yield-to-maturity as of the settlement date?
Step by Step Solution
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Step: 1
To calculate the yieldtomaturity YTM of a sovereign bond you can use the following formula ...
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Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
