Loading...
CFA Level 1
Fixed Income

Calculating Yield to Maturity of a Bond

Medium Fixed Income Valuation Yield Measures

Investors often analyze various yield measures to assess the return on fixed-income securities. You are provided with a bond that has a par value of $1,000, pays a coupon of 6% annually, and has 5 years until maturity. Currently, this bond is trading at $950. Given this information, calculate the bond's yield to maturity (YTM) and select the most appropriate yield measure among the following options.

Hint

Submitted7.6K
Correct4.5K
% Correct60%