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    What is the bond's yield to maturity?

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    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?

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    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

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