A simple discount bond pays $20,000 in one year. Find the yield to maturity when the price

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A simple discount bond pays $20,000 in one year. Find the yield to maturity when the price of the bond is

        i.   $18,000
        ii. $19,000
        iii. $20,000

What happens to the yield to maturity as the price of the bond increases?

Related Book For answer-question

Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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Posted Date: Feb 21, 2024 11:50 PM

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A simple discount bond pays $20,000 in one year. Find the yield to maturity when the price

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Expert Answer:

To find the yield to maturity YTM of a simple discount bond we can use the formula 1 YTM FV 1 ... View the full answer

Introduction To Corporate Finance

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