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Salem Co Bond Yield to Maturity

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The Salem Co. bond currently sells for $955, has a 12% coupon interest rate and $1,000 par value, pays interest annually, and has 20 years to maturity. Calculate the yield to maturity YTM

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This solution is comprised of a detailed explanation to calculate the yield to maturity.

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bond yield to maturity

The Salem Co. bond currently sells for $955, has a 12% coupon interest rate and $1,000 par value, pays interest annually, and has 20 years to maturity. Calculate the yield to maturity YTM
We can determine YTM by using the following formula.

where B is the issued/current price
C is the coupon payment
r is the ...

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