You have a bond with a Face value of $100. The bond has 2-years to maturity and

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You have a bond with a Face value of $100. The bond has 2-years to maturity and pays a 10%p.a. annual coupon. The bond is currently trading at a price of $98.50.

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Write the code for an optimisation to find the Yield to Maturity (discount rate that sets price = PV of bond cashflows).

Related Book For answer-question

Introduction to Operations Research

ISBN: 978-1259162985

10th edition

Authors: Frederick S. Hillier, Gerald J. Lieberman

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Posted Date: Jul 12, 2023 11:47 PM

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You have a bond with a Face value of $100. The bond has 2-years to maturity and

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Expert Answer:

To find the Yield to Maturity YTM for a bond using optimization you can use the rootfinding method t... View the full answer

Introduction to Operations Research

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