Question: Suppose a bond has a face value of $100, annual coupon payments of $4, a maturity of 5 years, and a price of $90. a.

Suppose a bond has a face value of $100, annual coupon payments of $4, a maturity of 5 years, and a price of $90.
a. Write an equation that defines the yield to maturity on this bond.
b. If you have the right kind of calculator or software, calculate the yield to maturity.

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a 90 41 i 41 i 2 41 i 3 41 i 4 1041 i 5 b The yield to maturity is i 604 If you do not ha... View full answer

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