Question
You are considering the purchase of a coupon bond with a face value of $1,000, which matures in 18 years, and pays 4.75% (annual) coupons.
You are considering the purchase of a coupon bond with a face value of $1,000, which matures in 18 years, and pays 4.75% (annual) coupons. If the current market price of the bond is $970.78, estimate the Yield-to-Maturity (YTM) of the instrument. What is the YTM if the coupons are paid semi-annual?
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Introduction To Financial Management
Authors: Sudanshu Pandeya
1st Edition
1774695316, 978-1774695319
