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Calculating bond's yield to maturity

A corporate bond has a face value of $1,000, and pays a $50 coupon every six months (i.e., the bond has a 10 percent semiannual coupon). The bond matures in 12 years and sells at a price of $1,080. What is the bond's nominal yield to maturity

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Please refer attached Excel file for better understanding of functions used.


At the end
of year Period No. Cash Flow
0 0 -1080
0.5 1 50
1 2 50
1.5 3 50
2 ...

Solution Summary

Solution describes the steps in finding nominal YTM for a semi annunal coupon bond.