Homework Answers
P = FV / ( 1 + YTM)n
P / FV = 1 / ( 1 + YTM)n
990 / 1000 = 1 / ( 1 + YTM)2
0.99 = 1 / ( 1 + YTM)2
( 1 + YTM)2 = 1 / 0.99
( 1 + YTM)2 = 1.010101
1 + YTM = 1.0050
YTM = 0.0050 or 0.50%
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