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1. What is the yield to maturity (YTM) of a 5% coupon bond with a face value of $1,500, selling
for $1,500, and with only one year left until maturity? Under the assumption with no inflation,
explain a scenario when this coupon bond will have a negative yield.

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1. What is the yield to maturity (YTM) of a 5 coupon bond with a fa.pdf

  • 1. 1. What is the yield to maturity (YTM) of a 5% coupon bond with a face value of $1,500, selling for $1,500, and with only one year left until maturity? Under the assumption with no inflation, explain a scenario when this coupon bond will have a negative yield.