The YTM of a 3-year default-free security with a face value of $1,000 and an annual coupon rate of 6% is closest to:
A) 5.3%
B) 5.8%
C) 5.5%
D) 5.2%

Name: The YTM of a 3-year default-free security with a face value of $1,000 and an annual coupon rate of 6% is closest to: A) 5.3% B) 5.8% C) 5.5% D) 5.2%
Brand: Quizplus
Rating: 4.7 (38 reviews)

Question

Quizplus · Accepted Answer

D) P = 60 / 1.058 + 60 / 1.055² + 1,060 / 1.052³ = 1,021.07 PV = -1,021.07 PMT = 60 FV = 1,000 N = 3 Compute I = 5.223 or 5.2%

The YTM of a 3-Year Default-Free Security with a Face