You are considering investing in a bond that will pay a fixed annual coupon rate of 5%
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Question:
You are considering investing in a bond that will pay a fixed annual coupon rate of 5% per year for 10 years, and has a face value of $1,000. If the bond is currently trading at a price of $950, what is the yield to maturity (YTM) of the bond? Assume semi-annual coupon payments and a semi-annual compounding frequency.
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
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