Asked by Adam
I missed one day of class and now i cannot figure this out... I thought that price and YTM relied on each other and now I have a question asking to solve for each?
An 11% semiannual bond matures in 7 years. The bond has a face value of $1,000 and a current yield of 10.76%. What are the bonds price and YTM?
so.... PMT=55
N=14
FV=$1,000
but I either have to know the PV (price) to get the YTM (I/Y) or the YTM to get the price...
An 11% semiannual bond matures in 7 years. The bond has a face value of $1,000 and a current yield of 10.76%. What are the bonds price and YTM?
so.... PMT=55
N=14
FV=$1,000
but I either have to know the PV (price) to get the YTM (I/Y) or the YTM to get the price...