### Understanding Bond Yield CalculationsA bond is selling at a price of 102.3. It has a 3.6% coupon, and 12 years until maturity.**What is the YTM of this bond?**#### TIP:Remember that the Present Value (PV) is usually entered into the calculator as a negative number.When you first do the calculations, you get the interest for a six-month period, but the Yield to Maturity (YTM) is always expressed as an annual amount, so you have to multiply it by 2.

Yield to maturity can be defined as the inflow of return on bond held by an capital contributor till…

Answered: A bond is selling at a price of 102.3.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A bond is selling at a price of 102.3. It has a 3.6% coupon, and 12 years until maturity. What is the YTM of this bond?