Find the yield to maturity on the following bond. I can buy a $1,000 bond for $950.

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Find the yield to maturity on the following bond.

I can buy a $1,000 bond for $950. I get $50 a year and it matures in 20 years. I want to know what interest rate I am earning.

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Personal Finance

ISBN: 978-1133595830

12th edition

Authors: Thomas Garman, Raymond Forgue

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Posted Date: Mar 22, 2023 01:01 AM

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Find the yield to maturity on the following bond. I can buy a $1,000 bond for $950.

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First we need to calculate the present value of the bonds future cash flows using the formula PV C1... View the full answer

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