Calculate the yield to maturity for bond


Problem:

A corporation has an outstanding bond with the following characteristics:

  • Coupon interest rate 6%
  • Interest payments semiannually
  • Face value $1,000
  • Years to maturity 8
  • Current market value $902.81

Required:

Question: What is the yield to maturity (YTM) for this bond?

Note: Please also briefly explain the various transactions.

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Finance Basics: Calculate the yield to maturity for bond
Reference No:- TGS0893597

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