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Compute the yield to maturity of a bond Coupon rate= 1.70%.   Last Price= $99.95 Yield at...

Compute the yield to maturity of a bond

Coupon rate= 1.70%.   Last Price= $99.95

Yield at offering= 1.74% Price at offering= $99.62

Offering date= 10/7/2020.   

First Coupon Date= 4/15/2021

Frequency= Semi-Annual

Maturity Date= 10/15/2030

This is a link of the bond ---> http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C939139

Please show steps and let me know in the comment if you need more info

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Answer #1

As it is a semi annual bond so for finding the new YTM we will divide the coupon payment by 2 and multiply the time by 2 .

Also we will multiply the answer of rate by 2

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