Calculate yield-to-maturity of bond


Q1. Use Treasury yield curve in Exhibit 1 for this question. What is the current price of the 7.29% coupon Treasury bond that pays its coupon semi-annually, par value $100, and has two years to maturity? If there is not an exactly corresponding interest rate, you should use extrapolation method. Also, calculate yield-to-maturity (YTM) of the bond.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Calculate yield-to-maturity of bond
Reference No:- TGS038488

Expected delivery within 24 Hours