A $1,000 face value bond matures in 11 years, pays interest semiannually, and has a 6.5 percent

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A $1,000 face value bond matures in 11 years, pays interest semiannually, and has a 6.5 percent coupon. The bond currently sells for $1,025. What is the yield to maturity?

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Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Apr 23, 2024 03:30 AM

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A $1,000 face value bond matures in 11 years, pays interest semiannually, and has a 6.5 percent

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Expert Answer:

To calculate the yield to maturity YTM of a bond we need to use the formula for YTM PV sumlimits... View the full answer

Corporate Finance

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