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A bonds current dollar price $1000, the same as its par value .The bond has 20...

A bonds current dollar price $1000, the same as its par value .The bond has 20 years to maturity and a 6% coupon rate. The bond makes semiannaul coupon payment. What is the bond's yield to maturity?
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Answer #1

The yield to maturity is calculated using RATE function in EXCEL

which proves the following

Yield to maturity = coupon rate , if current price of bond = par value of bond

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