What is the yield to maturity (total yield) on a $1,000 bond selling for $1,134.20 if...

Question

Question

What is the yield to maturity (total yield) on a $1,000 bond selling for $1,134.20 if the 2. bond has a coupon rate of 9% and

business finance

Answer 1

Answer #1

Calculating Yield to Maturity of Bond,

Using TVM Calculation,

I = [PV = -1,134.20, FV = 1,000, PMT = 90, N = 10]

I = 7.08%

So,

Yield to Maturity = 7.08%

Answer 2

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