Consider a six-year, 10% coupon bond with a face value of $1000 that John bought for $980.
(i). What is
the yield to maturity of this bond? (1 mark)
(ii). Suppose after holding it for one year, (and receiving one coupon payment), John sells it for $1050. What is the return John got from holding this bond for one year?
i). To find the YTM, we need to put the following values in the financial calculator: N = 6; PV =... View the full answer