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Detailed every step, thanks! A bond with exactly five years until maturity paying 6% p.a. coupons semi-annually and with a face value of $100 was
Detailed every step, thanks!
A bond with exactly five years until maturity paying 6% p.a. coupons semi-annually and with a face value of $100 was purchased at a yield of 6.5% p.a. The bond was sold exactly two years later for a yield of 5% p.a. All coupons were reinvested at 6% p.a. Calculate the realised yield-to-maturity on this bond.
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