Loading...
CFA Level 1
Fixed Income

Yield to Maturity Calculation of a Corporate Bond

Hard Fixed Income Valuation Yield Measures

A corporate bond with a face value of $1,000 pays a semiannual coupon rate of 6% and matures in 10 years. The bond is currently trading at a price of $950. To assess the bond's yield performance, you are tasked with calculating the Yield to Maturity (YTM). Which of the following correctly represents the YTM, given the bond's price, coupon rate, and eventual payment at maturity?

Hint

Submitted6.4K
Correct4.7K
% Correct73%