A 1010 face value bond is selling in the market place for 94

A $1,010 face value bond is selling in the market place for $940. It matures in 3 years. If keeps maturity, what is the bond\'s yield to maturity?

(round to nearest hundreths and then convert to a percentage)

PV = $ 940

FV = $1010

YTM = r

Assuming no coupon payments:

940 x (1 + r)³ = 1010

r = 2.42%

$A $1,010 face value bond is selling in the market place for $940. It matures in 3 years. If keeps maturity, what is the bond\'s yield to maturity? (round to nea$

A 1010 face value bond is selling in the market place for 94

Solution

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