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An investor buys a 3 0 - year bond with a $ 1 , 0 0 0 face value for $ 9 5 0 .

An investor buys a $30 -$ year bond with a $ $1, 000$ face value for $ $950 .$ The bonds coupon rate is $5$ percent and interest payments are made semi $-$ annually. Using the YTM $($ yield to maturity $)$ approximation formula, what is the bonds yield to maturity? Show your calculations.

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Question

An investor buys a 3 0 - year bond with a $ 1 , 0 0 0 face value for $ 9 5 0 .

An investor buys a 30-year bond with a $1,000 face value for $950. The bonds coupon rate is 5 percent and interest payments are made semi-annually. Using the YTM (yield to maturity) approximation formula, what is the bonds yield to maturity? Show your calculations.

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An investor buys a $30 -$ year bond with a $ $1, 000$ face value for $ $950 .$ The bonds coupon rate is $5$ percent and interest payments are made semi $-$ annually. Using the YTM $($ yield to maturity $)$ approximation formula, what is the bonds yield to maturity? Show your calculations.