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Assume today you purchase a bond that will mature in 10 years for $985. Bonds face value is $1,000 and coupon payment per year is
Assume today you purchase a bond that will mature in 10 years for $985. Bond’s face value is $1,000 and coupon payment per year is $120 (coupon rate=12%).
A. What is the bond’s yield to maturity (YTM)?
B. What is the total return if you sell the bond after 6 years for $1,025?
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1 Bond Calculations A Bonds Yield to Maturity YTM To calculate the YTM we can use the following form...
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
IFRS edition volume 2
978-0470613474, 470613475, 978-0470616314
