4. You plan to buy a 10-year semi-annual bond with a face value of $1,000 and a 10% annual coupon rate. You know that the bond is traded at par. What is the bond's YTM(BEY)? (a) 0% (b) 5% (c) 10% (d) 10.25%
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Since the bond pays semi-annually, the semi-annual coupon payment is $100 / 2 = $50. Show more…
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