A bond with 20 years remaining until maturity is currently trading for 111 per 100 of par

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A bond with 20 years remaining until maturity is currently trading for 111 per 100 of par value. The bond offers a 5% coupon rate with interest paid semiannually. The bond’s annual yield-to-maturity is closest to:

A. 2.09%.

B. 4.18%.

C. 4.50%.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 04, 2023 11:10 PM

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A bond with 20 years remaining until maturity is currently trading for 111 per 100 of par

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To calculate the annual yieldtomaturity YTM of a bond we need to know the following information Curr...View the full answer

Fixed Income Analysis

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