Consider coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently selling for $1,150 and has 9 years to maturity. What is the bond's yield to maturity?
Added by Tammy M.
Step 1
YTM is the total return anticipated on a bond if it is held until it matures. YTM is expressed as an annual percentage rate (APR). The formula to calculate YTM is as follows: YTM = [C + (F - P) / n] / [(F + P) / 2] Show more…
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