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Compute the yield to maturity on a bond with a $1000 par value, a coupon rate of 3.75% with semi-annual payments, and a 13-year maturity if the price is $804.21+U u=12

Compute the yield to maturity on a bond with a $1000 par value, a coupon rate of 3.75% with semi-annual payments, and a 13-year maturity if the price is $804.21+U u=12

Essentials Of Investments
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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Compute the yield to maturity on a bond with a $1000 par value, a coupon rate of 3.75% with

semi-annual payments, and a 13-year maturity if the price is $804.21+U

u=12

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Step 1

The yield to maturity rate of return realized by holding the bond till the maturity of bond and purchased on the price based on the yield to maturity.

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