Yield to maturity: Huan Zhang bought a 10-year bond that pays 8.25 percent semiannually for $911.10. What is the yield to maturity on this bond?
A) 7.6%
B) 8.6%
C) 9.6%
D) 10.6%

Question

Quizplus · Accepted Answer

The yield to maturity (YTM) can be calculated using the bond price, coupon rate, and time to maturity. Given the bond price of $911.10, a semiannual coupon rate of 8.25%, and a 10-year maturity, the YTM is approximately 9.6%.

Yield to Maturity: Huan Zhang Bought a 10-Year Bond That