It has coupon payments of 10 in one year 10 in two years 10


A riskless coupon bond is offered in the market at a price of $124.73. It has coupon payments of $10 in one year, $10 in two years, $10 in three years, and a coupon and principal payment of $110 in four years. In this problem, we assume that all yields and interest rates are compounded annually.

(a) Compute the YTM based on the market offer price.

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Other Subject: It has coupon payments of 10 in one year 10 in two years 10
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