Footsteps Co. has a bond outstanding with a coupon rate of 4.8 percent and annual payments. The bond currently sells for $1,356.29, matures in 21 years, and has a par value of $1,000. What is the YTM of the bond?
Footsteps Co. has a bond outstanding with a coupon rate of 4.8 percent and annual payments. The bond currently sells for $1,356.29, matures in 21 years, and has a par value of $1,000. What is the YTM of the bond?
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Bonds are fixed-income assets that serve as a representation of investor loans to borrowers (typically corporate or governmental). A bond is analogous to a contract outlining the terms of a loan and the associated payments between a lender and borrower. Corporations, towns, cities, states, and other sovereign governments utilise bonds to finance projects and operations. Bondholders are the issuer's borrowers or creditors. Bond specifications sometimes include the terms for the borrower's variable or fixed interest payments as well as the estimated date by which the loan's principal will be paid back to the bond owner.
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