Question
An investor must choose between two bonds: Bond A pays $90 annual interest and has a market value of $815. It has fifteen years to
| An investor must choose between two bonds: |
| Bond A pays $90 annual interest and has a market value of $815. It has fifteen years to maturity. |
| Bond B pays $81 annual interest and has a market value of $700. It has eight years to maturity. |
| Assume the par value of the bonds is $1,000. A drawback of current yield is that it does not consider the total life of the bond. For example, the approximate yield to maturity on Bond A is 11.51 percent. What is The exact yield to maturity? |
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Sustainable Finance And Impact Investing
Authors: Alan S. Gutterman
1st Edition
1637423764, 978-1637423769
