A 25-year, $1,000 par value bond has an 8.5% semi-annual coupon. The bond currently sells for $875.

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A 25-year, $1,000 par value bond has an 8.5% semi-annual coupon. The bond currently sells for $875. What is the Yield to Maturity of this 25-year bond?

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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Posted Date: Feb 29, 2024 03:36 AM

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A 25-year, $1,000 par value bond has an 8.5% semi-annual coupon. The bond currently sells for $875.

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To calculate the yield to maturity YTM of a bond we need to find the interest rate at which the pres... View the full answer

Investment Analysis and Portfolio Management

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