Question

The bonds issued by manson amp; son bear a coupon of 6 percent, payable semiannually. the bond matures in 15 years and has a $1,000 face value. currently, the bond sells at par. what is the yield to maturity?

Answer 1

Answer:

The Yield to maturity is 6%

Explanation:

As we know

• If a bond is selling at a discount, the bond's coupon rate is less than its YTM.

• If a bond is selling at a premium, the bond's coupon rate is more than its YTM.

• If a bond is selling at a par, the bond's coupon rate is equal to its YTM.

So, the given bond is selling at par

Yield to maturity = Bond Coupon Rate

Yield to maturity = 6%