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Assume today you purchase a bond that will mature in 10 years for $985. Bond’s face...

Assume today you purchase a bond that will mature in 10 years for $985. Bond’s face value is $1,000 and coupon payment per year is $120 (coupon rate=12%).
A. What is the bond’s yield to maturity (YTM)?
B. What is the total return if you sell the bond after 6 years for $1,025?
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Answer #1

Please give it a thumbsup if you find this answer helpful.I Cash flowers .. Year o 1 Cash flows - 985 120 2 120 3 . 120 9 120 10 1120 For yield to maturity or 985 = 120 tr + 120 + 120

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Answer #2
Is a 50 Minute R=12.268% and the second answer is I =12.675%
source: YesYes
answered by: anonymous
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