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Mr. Jhon, CFA, is estimating the value of a non-traded $1000 par value, 4% annual- pay, A+ rated bond that has three years remaining until
Mr. Jhon, CFA, is estimating the value of a non-traded $1000 par value, 4% annual- pay, A+ rated bond that has three years remaining until maturity. He has obtained the following yields-to-maturity on similar corporate bonds: A+ rated, 1-year annual-pay, YTM = 4.3% A+ rated, 6-year annual-pay, YTM = 6.1% A+ rated, 6-year annual-pay, YTM = 6.5% Estimate the YTM of the non-traded bond
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