QUESTION 17 Andy is considering purchasing a 12-year bond that is selling for $1,300. What is the YTM for this bon...

Question

Question

Answer 1

Answer #1

17.

Calculating YTM,

Using TVM Calculation,

I = [PV = -1,300, FV = 1,000, N = 24, PMT = 40]

I = 4.70%

18.

Option A is correct

YTM < Coupon Rate,

As bond is trading at premium to par value.

Answer 2

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