Share
Explore BrainMass

What is the bond's yield to maturity?

You just purchased a bond that matures in 5 years. The bond has a face value of $1000 and has an 8% annual coupon. The bond has a current yield of 8.21%. What is the bond's yield to maturity?

Solution Preview

See attached file for clarity.

You just purchased a bond that matures in 5 years. The bond has a face value of $1000 and has an 8% annual coupon. The bond has a current yield of 8.21%. What is the bonds yield to maturity?

Current yield = ...

Solution Summary

This solution is comprised of a detailed explanation to answer what is the bond's yield to maturity.

$2.19