What is the semiannual yield of a bond which costs 750 today
What is the semi-annual yield of a bond which costs $750 today, pays $25 in interest semiannually, and matures at the end of 10 years. Enter as a whole number (i.e. 18.2% would be entered as 18.2)
Solution
Ans yield = interest /price (100)
= 25/750 (100)==3.33
Yeipd is not effected by years however yield to maturity is effected by it
