Asked by Jessica Shatteen on Jun 20, 2024
Verified
An investor bought a 7% bond at 82. The bond would mature in 6 years. Compute the rate of yield to maturity. (Do not consider commission. Round answer to two decimal places.)
Yield To Maturity
The total return anticipated on a bond if it is held until the date it matures, taking into account both current interest payments and the gain or loss upon redemption.
7% Bond
A bond that pays 7% interest annually on its face value.
- Determine the yield to maturity (YTM) for a bond, taking into account its acquisition cost, periodic interest rate, and remaining duration until maturity.
Verified Answer
CS
Learning Objectives
- Determine the yield to maturity (YTM) for a bond, taking into account its acquisition cost, periodic interest rate, and remaining duration until maturity.