Determine the bond yield to maturity


BCC has issued 8? percent debentures that will mature on July 15, 2030. Assume that interest is paid and compounded annually. If an investor purchased a $1,000 denomination bond for $1,025 on July 15, 2010, determine the bond's yield to maturity. Explain why an investor would be willing to pay $1,025 for a bond that is going to be worth only $1,000 at maturity.

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Finance Basics: Determine the bond yield to maturity
Reference No:- TGS043423

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