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Consider a 12%, 15 year bond that pays interest semiannually, and its current price is $675. What is the promised yield to maturity? I can
Consider a 12%, 15 year bond that pays interest semiannually, and its current price is $675. What is the promised yield to maturity?
I can see the answer on the document, I just don't understand where the 60 is coming from.
675 = 60( 1 - [(1/1+i)^30] / i) + 1000 / (1 + i)^30
i = 0.09227
Annualized = 0.092227x 2 = 0.1845
I just don't understand the "60"
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