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Evans Emergency Response bonds have 8 years to maturity. Interest is paid semiannually. The bonds have...

Evans Emergency Response bonds have 8 years to maturity. Interest is paid semiannually. The bonds have a $1,500 par value and a coupon rate of 6 percent. If the price of the bond is $1,078.56, what is the annual yield to maturity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

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Yield to Maturity (YTM)

Yield maturity (YTM) is the Of return expected a bond Which is held till maturity. It is the internal rate of return a bond I.E where all future cash flows from bond WII be to price of the bond.   The yield to maturity is used to calculate the yield on a bond based on its current price on the market the yield to maturity formula looks at the effective yield of a bond based on compounding as opposed to the simple yield which is found using the dividend yield formula Bond price

68 1718 Yield to Maturity (YTM) Yield to maturity (YTM) is the rate of return expected on a bond which is held till maturity. It is essentially the internal rate of return on a bond I.E where all future cash flows from bond will be to price of the bond. C-Coupon/Interest Payment F-Face Value P-Price nyears to maturit The yield to maturity formula is used to calculate the yield on a bond based on its current price on the market. The yield to maturity formula looks at the effective yield of a bond based on compounding as opposed to the simple yield which is found using the dividend yield formula bond price VS yield to maturity: xield to maturity-coupon rate then bond is trading at par. . xield to maturity < coupon rate then bond will be trading above par e trading at premium. xield. to maturity> coupon rate then bond will be trading below par discount. trading at

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