CHAPTER 14: BOND PRICES AND YIELDS

The annualized bond equivalent yield to maturity is therefore 4 × 2= 8%. c. Set PV = (-)1100 and compute the interest rate to find that YTM = 3.592%. The annualized bond equivalent yield to maturity is therefore 3.592 × 2 = 7.184%. ................
................

In order to avoid copyright disputes, this page is only a partial summary.