Question
John is planning to invest $10,000 in a bond that pays an annual coupon rate of 5% for a period of 5 years. The bond
John is planning to invest $10,000 in a bond that pays an annual coupon rate of 5% for a period of 5 years. The bond has a face value of $10,000 and is currently selling at $9,500. If John plans to hold the bond until maturity, what will be his yield to maturity (YTM)?
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
