The face value of a bond is $1000. It is trading at a price of 900 dollars.

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The face value of a bond is $1000. It is trading at a price of 900 dollars. It pays a coupon on a semi-annual basis, and the coupon rate is 20%. The bond will mature in 30 years. What is the yield to maturity?

Related Book For answer-question

Introduction to Operations Research

ISBN: 978-1259162985

10th edition

Authors: Frederick S. Hillier, Gerald J. Lieberman

Posted Date: May 27, 2023 11:05 AM

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The face value of a bond is $1000. It is trading at a price of 900 dollars.

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To solve for the yield to maturity we need to use the following formula P C r 1 1 ... View the full answer

Introduction to Operations Research

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