Question
What is the approximate yield to maturity for a 10-year bond that pays 7 interest on a $1000 face value annually if the bond sells
What is the approximate yield to maturity for a 10-year bond that pays 7 interest on a $1000 face value annually if the bond sells for $980? (Do not round intermediate calculations.)
A. 8.79
B. 7.29
C. 6.79
D. 8.29
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The yield to maturity YTM of a bond can be calculated using the following formula P fracC times 1 1 ...
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Step: 2
Step: 3
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Financial Reporting And Statement Analysis A Strategic Approach
Authors: Clyde P. Stickney, Paul Brown, James M. Wahlen
5th Edition
032418638X, 978-0324186383
