Consider a bond that pays a 10.00% semi-annual coupon and matures in 10 years. If the...

Consider a bond that pays a 10.00% semi-annual coupon and matures in 10 years. If the current market value of the bond is $1,200, what is the YTM?

Solutions

Expert Solution

The yield to maturity (YTM) is calculated using Rate function in excel below

Therefore, YTM is 7.165%

jeff jeffy answered 1 year ago

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