# Yield to Maturity of a Ten-Year Bond

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A ten-year bond pays 11% interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity?

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yield to maturity

A ten-year bond pays 11% interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity?

We need to calculate how much the bonds have been issued by using the formula as follows: -

where B is the issued price

C is the coupon payment

r is the discount or yield ...

#### Solution Summary

This solution is comprised of a detailed explanation to compute what is approximate yield to maturity.

$2.49