The market price of a semi-annual pay bond is $977.88. It has 18.00 years to maturity and a coupon rate of 5.00%. Par value is $1,000. What is the yield to maturity?
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Step 1: Calculate the semi-annual coupon payment The semi-annual coupon payment can be calculated using the formula: Coupon payment = Coupon rate * Par value / 2 Coupon payment = 5% * $1,000 / 2 Coupon payment = $25 Show more…
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