Bank of America bonds are currently trading at $952.31.The bonds have a face value of $1,000,a coupon rate of 8% with payments made semi-annually,and mature in 20 years.What is the yield to maturity?

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P_bond = C × 11ea7fdb_fbff_c490_a768_0314cbfb6d84_TB2902_11 + 11ea7fdb_fbff_c491_a768_219b423b90c8_TB2902_11 $952.31 = $40 × 11ea7fdb_fbff_c492_a768_0fadd175e41d_TB2902_11 + 11ea7fdb_fbff_c493_a768_25684f14d94a_TB2902_11 k_d = 4.25% (semi-annual), 4.25% × 2 = 8.5% (annual) Using a financial calculator: N = 40, PMT = 40, PV = $-952.31, FV = 1,000, CPT I/Y = 4.25% × 2 = 8.5%

Bank of America Bonds Are Currently Trading at $952