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What is the bond''s approximate ytm in given question

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1. A $5,000 bond is trading for $4,950. The bond's current yield CY is 0.035. What is the bond's coupon rate?

2. Assume a bond with $15,000 face value and a coupon rate of 3.2 % has 4 years to its maturity. An investor pays $99 per $100 face value and purchases the bond.

(a) What is the bond's approximate YTM?

(b) What is the bond's exact YTM (assume annual compounding and coupon payment)?

(c) What is the bond's current yield CY?

(d) What is the investor's rate of return?

Reference no: EM13876696

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