A $1,000 par value bond makes two coupon payments per year of $60 each.What is the bond's yield to maturity if the bond currently trades at $1,200 and will mature in two years?

Name: A $1,000 par value bond makes two coupon payments per year of $60 each.What is the bond's yield to maturity if the bond currently trades at $1,200 and will mature in two years?
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Question

Quizplus · Accepted Answer

n' = 4,r' = YTM/2,PV = -$1,200,FV = $1,000,PMT = $60
r'=0.888%
YTM =1.78%

A $1,000 Par Value Bond Makes Two Coupon Payments Per