Method of Initial Rate Worksheet - Weebly

Therefore, using the constant yield method, we find that the price in one year (when maturity falls to 9 years) will be (at an unchanged yield. $814.60, representing an increase of $14.60. Total taxable income is: $40.00 + $14.60 = $54.60. 21. a. The bond sells for $1,124.72 based on the 3.5% yield to maturity. ................
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