You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and an 3.5% semi-annual coupon. The bond has a current yield of 5.62 %. What is the bond's yield to maturity?

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
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You just purchased a bond that matures in 12
years. The bond has a face value of $1,000 and an
3.5% semi-annual coupon. The bond has a
current yield of 5.62 %. What is the bond's yield to
maturity?
Transcribed Image Text:You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and an 3.5% semi-annual coupon. The bond has a current yield of 5.62 %. What is the bond's yield to maturity?
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