Asked by Nicholas Maynard on May 07, 2024
Verified
An investor bought an 8 ½% bond at 108. The bond would mature in 8 years. Compute the rate of yield to maturity. (Round answer to two decimal places.)
8 ½% Bond
A bond that pays an annual interest rate of 8.5%, where the interest payment is made to bondholders as compensation for their investment.
- Estimate the yield to maturity for a bond, analyzing its purchase price, the coupon payment rate, and the duration till maturity.
Verified Answer
NS
Learning Objectives
- Estimate the yield to maturity for a bond, analyzing its purchase price, the coupon payment rate, and the duration till maturity.