Question
You just purc bond that matures in 5 years. a face v SI,OOO, an 8 percent annual coupon, and has a current yield of
You just purc bond that matures in 5 years. a face v SI,OOO, an 8 percent annual coupon, and has a current yield of 8.21 percent. What is the bond's yield to maturity (YTM)? problem asks you to solve for the YTM, given that following facts: PMT 5 80 1000 rder to solve for I we need PV. vever, pu are also given that the current yield is equal to 8.21%. Given this information we find PV Current yield 0.0821 Annual interest/ Current price S80iPV 580/0.0821 S974.42
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Statistics Informed Decisions Using Data
Authors: Michael Sullivan III
5th Edition
978-0134135373, 134133536, 134135377, 978-0134133539
