Answer to Question #100933 in Finance for Usman Tariq

Question #100933

The Bonds of Corporation Y are trading at £89.92, have a 20 year maturity date, a nominal value of £100 and pay an annual coupon of 9 percent. What is the yield to maturity of these bonds?

Expert's answer

"YTM = \\frac{9 + (100 - 89.92)\/20}{(100 + 89.92)\/2} = 0.1\\ or\\ 10\\%."

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