Question
For the following bond (described below) determine the YTM (as an EAR) after ONE round of linear interpolation. Make sure you use 4% and 11%
For the following bond (described below) determine the YTM (as an EAR) after ONE round of linear interpolation. Make sure you use 4% and 11% (measured as an EAR), as your initial two guesses when you conduct the linear interpolation.
Do not do a second round of linear interpolation.
Rather, report you estimate of the YTM (as an EAR) after one round of linear interpolation.
The bond is:
A 9-year, 4.8% semi-annual coupon bond with a face value of $1000.
It's current price is $867.
What is the YTM (as an EAR) after one round of linear interpolation?
Show Answer in spreadsheet if possible, thank you
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The School Fundraising Handbook
Authors: Lindsey Marsh
1st Edition
1785834266, 978-1785834264
