Calculate the yield to maturity of a 10% coupon bond with 5 years
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Calculate the yield to maturity of a 10% coupon bond with 5 years

Calculate the yield to maturity of a 10% coupon bond with 5 years to maturity if the bond sells for $927.91. The face value of the bond is $1,000.  Assume semiannual coupon payments.

Hint
Accounts & Finance"To calculate the yield to maturity, the formula can be used is Yield to Maturity = [ Annual Interest + { ( FV - Price ) / Maturity } ] divided by [ ( FV + Price ) / 2 ]i.e. YTM = {C + (F-P) / n} / (F + P) / 2"...

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