Ask Question
3 June, 13:09

What is the YTM of a bond if it is sold for $1,029.33, pays a semi-annual coupon of $40, and matures in 15 years? Round to the nearest hundredth percent. Do not include a percent sign in your answer.

+3
Answers (1)
  1. 3 June, 13:23
    0
    The YTM of a bond is 7.67%

    Explanation:

    From a financial calculator, plug the following figures:

    PV = - 1029.33

    PMT = 40

    N = 15*2

    =30

    FV = 1000

    CPT I/Y = 3.834%

    Then:

    YTM = 3.834*2

    = 7.67%

    Therefore, The YTM of a bond is 7.67%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What is the YTM of a bond if it is sold for $1,029.33, pays a semi-annual coupon of $40, and matures in 15 years? Round to the nearest ...” 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