Question

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What is the YTM of a 10 year, 6% annual coupon bond with a price of...

What is the YTM of a 10 year, 6% annual coupon bond with a price of $980? (Please answer as a percentage with no percent sign, showing 4 significant digits.)

Expert Solution

Given,

Years to maturity = 10 years

Coupon rate = 6%

Price = $980

Face value = $1000 (assumed)

Solution :-

Annual coupon payment = $1000 x 6% = $60

So, we have

PMT = 60

NPER = 10

PV = -980

FV = 1000

So,

YTM = 6.275%

jeff jeffy answered 2 years ago

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