The yield to maturity on at $10 000 face value bond with semi-annual coupon of 3 percent,maturing in three years and price of $9180 is 6 percent.

Question

Quizplus · Accepted Answer

The yield to maturity (YTM) of a bond is calculated based on the bond's current price, its face value, the coupon rate, and the time to maturity. Given the information, the YTM cannot be directly stated as 6% without performing the actual calculation, which involves solving for the rate in the bond pricing formula. The provided details (coupon rate, face value, price, and maturity) are necessary inputs for the calculation, but the YTM would need to be calculated specifically considering the bond's semi-annual interest payments and its current price relative to its face value.

The Yield to Maturity on at $10 000 Face Value