You just purchased a bond that matures in 5 years. The bond has a face value of $1000, an 8% annual coupon, and has a current yield of 8.21%. What is the bond’s yield to maturity?

Information provided: Face value: $1000 Annual coupon payment: $80 Current yield: 8.21% Term to…

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What is the bond’s yield to maturity?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 13P: Yield to Maturity and Current Yield You just purchased a bond that matures in 5 years. The bond has...

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You just purchased a bond that matures in 5 years. The bond has a face value of $1000, an 8% annual coupon, and has a current yield of 8.21%. What is the bond’s yield to maturity?

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