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Bond A is zero-coupon bond paying $100 one year from now. Bond B is a zero-coupon bond paying $100 two years from now. Bond
Bond A is zero-coupon bond paying $100 one year from now. Bond B is a zero-coupon bond paying $100 two years from now. Bond C is a 10% coupon bond that pays $10 one year from now and $10 plus the $100 principal two years from now. The yield to maturity on bond A is 10%, and the price of bond B is $84.18. Assuming annual compounding, what is the yield to maturity on Bond B? *Make sure to input all percentage answers as numeric values without symbols, and use four decimal places of precision. For example, if the answer is 6%, then enter 0.0600.
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To calculate the yield to maturity YTM for bond B we can use the formula for the present value ...Get Instant Access to Expert-Tailored Solutions
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