Suppose you have the opportunity to buy a bond with a par value of $1,000 and semi-annual coupon payments of $40 that matures in 10 years. Assume that the bond in problem 3 is selling for $1024. Using a spreadsheet program, what is the yield to maturity (to 2 decimal places)? What is the current yield?

Answer rating: 100% (QA)

To calculate the yield to maturity YTM and current yield of the bond well use the following ... View the full answer