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 ...
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