An investor is considering a bond that currently sells at a discount ($953) to

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account_balance_wallet $5

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?

Mar 25th, 2015

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


Mar 25th, 2015

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