Annual yield to maturity on the bond


Problem:

Maria Inc. has a $1,000 par value bond that is currently selling for $1,267.53. It has an annual coupon rate of 9.35%, paid semi annually, and has 18 years remaining until maturity.

Requirement:

Question: What is the annual yield to maturity on the bond if you purchased the bond today and hold it until maturity?

Note: Solve the problem and show all work.

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Finance Basics: Annual yield to maturity on the bond
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