What is the bond's yield to maturity?
Not what you're looking for? Search our solutions OR ask your own Custom question.
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?
© BrainMass Inc. brainmass.com December 15, 2022, 8:03 pm ad1c9bdddfhttps://brainmass.com/business/bond-valuation/what-is-the-bond-s-yield-to-maturity-269558
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.
$2.49