A company's bond has an annual coupon rate of 4 % . The bond pays coupons semiannually

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Question:

A company's bond has an annual coupon rate of

4 % .

The bond pays coupons semiannually and has a par value of $

1, 000 .

The bond matures in

6

years. What is the percentage

(%)

yield to maturity on the bond if the bond is currently selling for $

825 ?

Related Book For answer-question

Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Posted Date: Mar 19, 2024 07:49 AM

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A company's bond has an annual coupon rate of 4 % . The bond pays coupons semiannually

Question:

Expert Answer:

To calculate the yield to maturity YTM of the bond we need to follow these steps Given Coupon rate 4 ... View the full answer

Fixed Income Analysis

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