You notice that the price of a 4.0% coupon, 12-year Treasury Note is priced at 90:16 in the Wall Street Journal. What is the bond's yield to maturity?

Name: You notice that the price of a 4.0% coupon, 12-year Treasury Note is priced at 90:16 in the Wall Street Journal. What is the bond's yield to maturity?
Brand: Quizplus
Rating: 4.8 (55 reviews)

Question

Quizplus · Accepted Answer

90:16 = 90 + 16/32 = 90.5 ====> $905 20 ( (1/y) - ((1/.y) F1F1F1S1?F1F1F10 (1+ y)^-24) ) + 1,000 (1 + y)^-24 = 905 y = .02535====> 2 F1F1F1S1?F1F1F10 y = 5.07%

You Notice That the Price of a 4