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You have purchased a $1000 face value bond carrying a coupon rate of 5% with interest payments every 6 months, 6 years back for $950.
You have purchased a $1000 face value bond carrying a coupon rate of 5% with interest payments every 6 months, 6 years back for $950. In all you received 12 interest payments including the one at the time of maturity. If you kept this bond till maturity, what is your nominal yield to maturity ( Y.T.M). What is your effective yield. What is your nominal current yield and effective current yield.
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