Bond has a face value of $1,000 currently trading at $1,022. The bond has a coupon rate of 5.5% paid semi-annually with 5 years left to maturity.
Yield to maturity (YTM) of a bond is the required
YTM calculation is a trial and error process, however, we can calculate YTM using a financial calculator as follows:
INT = PMT = coupon amount
FV = M = maturity value
PV = Price of the bond (input as a negative value)
N = number of periods
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