Question
What is the yield-to-maturity for a bond with a coupon rate of 6.40 percent, 3 years to maturity, and a face value of $1,000, if
What is the yield-to-maturity for a bond with a coupon rate of 6.40 percent, 3 years to maturity, and a face value of $1,000, if the price of the bond today is $988.24 and coupons are paid semi-annually with the next coupon due in 6 months?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The yieldtomaturity YTM for the bond is approximately 342 which translates to 684 annually Heres how ...
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Step: 2
Step: 3
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Corporate Finance Core Principles And Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
6th Edition
1260571122, 978-1260571127
