Question
Consider a bond paying an annual coupon of $80 with face value of $1,000. Calculate the yield to maturity if the bond has: 20 years
Consider a bond paying an annual coupon of $80 with face value of $1,000.
Calculate the yield to maturity if the bond has:
20 years remaining to maturity and is priced at $1,200.
Formula to use: periodic YTM=( CFt+T/Pt)-1
DO NOT USE THIS FORMULA OR EXCEL SHEET
YTM=2FV+PVC+tFVPV
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Quantitative Financial Risk Management
Authors: Constantin Zopounidis, Emilios Galariotis
1st Edition
1118738187, 978-1118738184
