Question
Suppose that you want to buy a 2-year 5% coupon bond, which pays semi-annual coupons and costs $997. a. Find the yield to maturity on
Suppose that you want to buy a 2-year 5% coupon bond, which pays semi-annual coupons and costs $997.
a. Find the yield to maturity on this bond (YTM)
b. Find the effective annual rate of return that you earn on this bond (EAR)?
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Finance
Authors: Angelico Groppelli, Ehsan Nikbakht
7th Edition
1438010362, 9781438010366
