Homework Answers
| Formula | |||
| Yield to maturity (YTM) = [(Face value/Present value)^1/Time period]-1 | |||
| Time to maturity | Price | YTM formula | YTM |
| 1 | 958.23 | =((1000/958.23)^(1/1))-1 | 4.36% |
| 2 | 931.12 | =((1000/931.12)^(1/2))-1 | 3.63% |
| 3 | 815.2 | =((1000/815.2)^(1/3))-1 | 7.05% |
| 4 | 800.81 | =((1000/800.81)^(1/4))-1 | 5.71% |
| 5 | 764.45 | =((1000/764.45)^(1/5))-1 | 5.52% |
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