the face value of $1,000. The coupon rate is 9.25% paid semiannually. If there are 15 years left on the bond what is the yield to maturity? An investor is considering a 9.25%, 15 (years) at $953. What is YTM?
Amount on maturity , A = 1000(1+0.0925/2)^30 = $3882.1
considering 9.25% per annum, Amount on maturity , A = 953(1+0.0925)^15 = $3592.64
YTM = 3592.64/15 = $ 239.5
Content will be erased after question is completed.
Enter the email address associated with your account, and we will email you a link to reset your password.
Forgot your password?