What is the ytm

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Reference no: EM132056566

A bond sold by Ford Cars, has a face value of $1,000, a coupon payment of $70 per year, and a maturity of 3 years. The first coupon payment occurs a year from now. The market price is $720, what is the YTM?

Clue: You can use Excel's IRR function to solve this one. There will be 3 cash flows for the 3 years of $70, $70, and $1,070.

Reference no: EM132056566

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