Posted: September 12th, 2021
Yield to Maturity
Assessment Brief
Compare the interest rates on a 4%-coupon bond sold at £ 80 and a 8%-coupon bond sold at £ 90 if both bonds pay the same principal of £ 100 and mature in 1 year, at which time only one coupon payment is due.Is it asking for 80/1+0.04 + the 100 face value at maturity? I'm not sure what the equation isThanks for your help
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