Question

A 6.05 percent coupon bond with 20 years left to maturity is offered for sale at $1,075.25. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)

Answer 1

TVM calculator: N = 40, PV = -1,075.25, PMT = 30.25, FV = 1,000; CPT I = 2.714% YTM = 2.714% × 2 = 5.43%

Explanation: