Question
An investor purchases a bond for $650. The bond has 6 years left to maturity. In those 6 years, it will pay a coupon of
An investor purchases a bond for $650. The bond has 6 years left to maturity. In those 6 years, it will pay a coupon of $85 per year. It has a $1000 par value. What is the investor's yield to maturity? State your answer as a percent to one decimal place. For example10.2%.
Hint: You can treat this as a simple TVM problem.
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Cost Benefit Analysis
Authors: Harry F. Campbell, Richard P.C. Brown
3rd Edition
1032320753, 9781032320755
