If a government bond is expected to mature in two years and has a current price of $950, what is the bond 's YTM if it has a par value of $1,000 and a promised coupon rate of 10 percent Suppose this bond is sold one year after purchase for a price of $970 What would this investor 's holding period ...

The relevant formula for YTM is Using a financial calculator ...

If a government bond is expected to mature in two years and has a current price of

Question:

If a government bond is expected to mature in two years and has a current price of $950, what is the bond's YTM if it has a of $1,000 and a promised rate of 10 percent? Suppose this bond is sold one year after purchase for a price of $970. What would this investor's holding period yield be?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...