yield to maturity-you are offered a 20year, 6% annual coupon bond with a face or par value

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yield to maturity-you are offered a 20year, 6% annual coupon bond with a face or par value of $1,000 at a price today, of $1,088.75. What rate of interest would you earn if you bought the bond and held it until maturity? That is, what is the YTM?

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Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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Posted Date: Feb 28, 2024 12:14 AM

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yield to maturity-you are offered a 20year, 6% annual coupon bond with a face or par value

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Formula YTM C F P n F P 2 100 where C Annual coupon payment 6 of 1000 60 F Face value of the bond ... View the full answer

Financial Management Principles and Applications

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