A bond with a face value of $1000 and 15 years remaining until maturity pays a coupon
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Question:
A bond with a face value of $1000 and 15 years remaining until maturity pays a coupon rate of 5%. Calculate its yield to maturity if it is priced at $900.(Do not round the intermediate calculations. Round your answer to 2 decimal places.)
Assume that:
Bond interest is paid semiannually.
The bond was originally issued at its face value.
Bonds are redeemed at their face value at maturity.
Market rates of return and yields to maturity are compounded semiannually.
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