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will upvote, thanks!! For the following bond (described below) determine the YTM (as an EAR) after ONE round of linear interpolation. Make sure you use
will upvote, thanks!!
For the following bond (described below) determine the YTM (as an EAR) after ONE round of linear interpolation. Make sure you use 4% and 11% (measured as an EAR), as your initial two guesses when you conduct the linear interpolation. Do not do a second round of linear interpolation. Do not report the (accurate) YTM - as obtained by Excel. Rather, report you estimate of the YTM (as an EAR) after one round of linear interpolation. The bond is: A 10-year, 5.3% semi-annual coupon bond with a face value of $1000. It's current price is $844. What is the YTM (as an EAR) after one round of linear interpolation? Enter your answer as a PERCENT, not as a decimal Step by Step Solution
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