Settlement and maturity on the bond

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An investor is considering a bond priced at $1,010 with a face value of $1,000. The coupon rate is 6.6% paid semiannually. There are 18 years remaining between settlement and maturity on the bond. Using the Excel YIELD function and the related example in Exhibit 10.2 in Chapter 10, calculate the yield to maturity.

Note: Excel requires that bond prices and face values be expressed on 100 point scale so you must divide current price and redemption value by 10

Reference no: EM132364337

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