Question: for the bottom question, Im trying to calcukate the value using this price of bond formula : P= Face Value / (1+YTM n )^n YTM=Yield
for the bottom question, Im trying to calcukate the value using this price of bond formula :
P= Face Value / (1+YTM n )^n
YTM=Yield to Maturity
I dont know what the n should be.
Suppose a risk-free zero-coupon bond with $1000 FV, which matures in 1.5 years, is trading for $940. What is its YTM expressed as an EAR and as a 6 month APR? What is the value (price) of the bond 2 months prior to maturity assuming the same YTM
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