Question
You have purchased a zero-coupon bond of $1000 face value at a price of $450; is payable at maturity in 15 years. a.calculate the YTM
You have purchased a zero-coupon bond of $1000 face value at a price of $450; is payable at maturity in 15 years.
a.calculate the YTM for this bond at this price;
b.Explain the concept of YTM and the conditions that you will actually realize this YTM.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a To calculate the Yield to Maturity YTM for the bond we can use the formula for YTM YTM FVP ight1n ...
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Step: 2
Step: 3
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Linear Algebra A Modern Introduction
Authors: David Poole
4th edition
1285463242, 978-1285982830, 1285982835, 978-1285463247
