What is the yield to maturity of bond


A 25-year, $1,000 par value bond has an 8.5% annual coupon. The bond currently sells for $875.

(a) What is the yield to maturity of the bond?

(b) Assuming the YTM stays constant, what will be the bond price five years from today.

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Finance Basics: What is the yield to maturity of bond
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