Suppose the yield on a one-year, zero-coupon bond is 5%. The forward rate for year 2 is
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Maturity (years) Zero-coupon YTM 4 5.0% 4.0% 5.5% 5.5% 4.5%
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The yield to maturity (YTM) is the percentage rate of return for a bond assuming that the investor holds the asset until its maturity date. This video will give a complete tutorial on how to calculate Yield to Maturity on Microsoft Excel
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