Yield to maturity:?? The bond shown in the following table pays interest annually. Par value Coupon interest rate Years to...

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Finance

Yield to maturity:??
The bond shown in the following table pays interest
annually.
Par value
Coupon interest rate
Years to maturity
Current value
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?$100100
77?%
1010
?$5050
a. Calculate the yield to maturity
? (YTM?)
for the bond.
b. What relationship exists between the coupon interest rate andyield to maturity and the par value and market value of a? bond?Explain.
a. The yield to maturity
? (YTM?)
for the bond is
nothing ?%.
? (Round to two decimal? places.)

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4.1 Ratings (841 Votes)

aYield to Maturity YTM of the Bond The Yield to maturity of YTM of the Bond is calculated using financial calculator as follows Normally the YTM is calculated either using EXCEL Functions or by using Financial Calculator Variables Financial Calculator Keys Figure Face Value 100 FV 100 Coupon Amount 100 x 700 PMT 7 Market Interest Rate or Required Rate of Return 1Y See Answer

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