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    Approximate yield to maturity

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    A ten-year bond pays 11% interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity? (Show all work/calculations/formulas)

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    Solution Preview

    The formula for approximate yield to maturity is
    Approx YTM = (annual interest payment + ...

    Solution Summary

    The solution explains how to calculate the approximate yield to maturity of a bond