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A coupon bond that pays interest semi-annually is selling at par value of $1,000, matures in seven years and has a coupon rate of 8.6%. The yield to maturity on this bond is

Sagot :

Parrain

Based on the selling price of the bond and the coupon rate, the yield to maturity on the bond is 8.6%.

What is the yield to maturity on this bond?

When a bond is selling at par, it means that the coupon rate and the yield to maturity are the same.

The bond in question is selling at its par price of $1,000 which means that the coupon rate of 8.6% is the same as the yield to maturity.

In conclusion, the YTM is 8.6%.

Find out more on bonds at https://brainly.com/question/25965295.

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