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Example 2: Bond YTM Input area: Annual coupon rate 7% Settlement date 1/1/00 Maturity date 1/1/09...

Example 2: Bond YTM
Input area:
Annual coupon rate 7%
Settlement date 1/1/00
Maturity date 1/1/09
Coupons per year                       1
Bond price (% of par)             96.150
Face value (% of par)                   100
Output area:
Yield to maturity
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Answer #1

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Given that-
Annual coupon rate 7%
Settlement date 1/1/2000
Maturity date 1/1/2009
Coupons per year                       1
Bond price (% of par)             96.150
Face value (% of par)                   100
Put in financial calculator
PV -96.15
FV 100
PMT=100*7% 7
N 9
Compute I 7.61%
Therefore Yield to matutiry = 7.61%
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