What is the yield to maturity


Problem

Bond Valuation

1) Bond Valuation, YTM

A bond is currently trading at $952.31. The bond has a face value of $1,000, a coupon rate of 8% with payments made semi-annually, and mature in 20 years. What is the yield to maturity?

2) Coupon Bond, Find C

Company A's bonds are trading today for a price of $961.29. The bond currently has 10 years until maturity and a yield to maturity of 5%. The bond pays annual coupons, and the next coupon is due in one year. What is the coupon rate of the bond?

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Finance Basics: What is the yield to maturity
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