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
Related questions
Question
given the price of a 2-year coupon, bond is $875 its coupon rate is 10% and its face value is 1000 the YTM on this bond is?
Expert Solution

Step 1
Given,
Face value of the bond (FV) = $1,000
Current bond price (PV) = $875
Coupon rate = 10%
Coupon payment (C) = $1000 * 10% = $100
Number of years (t) = 2
Step by step
Solved in 2 steps

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