Question
Use Excel to answer this question 1. What is the Yield to Maturity (YTM) of a bond which can be bought today for $10,131.25? The
Use Excel to answer this question
1. What is the Yield to Maturity (YTM) of a bond which can be bought today for $10,131.25? The bond has a face value of $10,000. It pays 9.50% coupons semi-annually and it will mature in exactly 7 years. (2 marks)
HINT: First, compute the YTM by multiplying the periodic rate by the coupon frequency. Second, convert this rate to an effective annual rate.
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
