What is the YTM on a 10%, 20-year simi-annual coupon bond thatthat currently trades for...

What is the YTM on a 10%, 20-year simi-annual coupon bond that that currently trades for $600?

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Expert Solution

We will use the financial calculator to compute the YTM

N = 40 (converted into semi annual periods)

PV = $600

FV = $1000

PMT = $50 ( converted into semi annual payment)

I/Y = 17.11% (annualized rate)

YTM = 17.11%

jeff jeffy answered 2 years ago

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