A US government bond has an annual coupon rate of 3% and a face value of $100. The bond pays semi-annual coupons and has 8 years to maturity. The next coupon will be paid 6 months from now. The current price of the  bond is $86.42. What is its yield to maturity (stated as an APR)? Please show your answer to at least two decimal places.

Answer rating: 100% (QA)

To calculate the yield to maturity YTM of a bond we need to use the fo... View the full answer