Ask Question
14 August, 17:31

Scott turner has a bond with 10 years to maturity, a face value of $1,000, an 8% interest rate, and a market price of $800. what is the yield-to-maturity on this bond?

+1
Answers (1)
  1. 14 August, 17:36
    0
    The yield to maturity, YTM, is the total return you could get from the bond if you keep the bond until it matures.

    To solve:

    Yield to maturity = { ($1,000 x 0.08) + [ ($1,000 - $800/10]}/[ ($800 + $1,000) / 2]

    Yield to maturity = 11.11%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Scott turner has a bond with 10 years to maturity, a face value of $1,000, an 8% interest rate, and a market price of $800. what is the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers