There is a bond on the market priced at $850 and that bond has a face value

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There is a bond on the market priced at $850 and that bond has a face value of $1,000. On this bond, yearly coupons are $150. The coupon rate for the bond is 15% and the bond will reach maturity in 5 years. What is the Yield to Maturity?

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Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Dec 08, 2023 02:23 AM

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There is a bond on the market priced at $850 and that bond has a face value

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To calculate the Yield to Maturity YTM of a bond you can use the following formula YTM C fr... View the full answer

Corporate Finance

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