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A bond has a market price of 500 shillings. It promises to a coupon payment of 15% per annum at the end of each year...

      

A bond has a market price of 500 shillings. It promises to a coupon payment of 15% per annum at the end of each year for two years. If the face value of the bond is 1000. Find the current yield to maturity

  

Answers


Dana
Annual coupon = 15% of 1000 =150
Yield to maturity
500= 150/ (1+y) +150/ (1+y)2+150(1+y)3
Yield to maturity =1.42%

Dana05 answered the question on July 15, 2019 at 15:21


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