Financial Markets

Multiple Choice

If a security pays 110 at the end of next year and 121 at the end of two years, what is the Yield to Maturity if it currently sells for 200?

  • 9%
  • 10%
  • 11%
  • 12%
YTM -> Face Value (price it sells for now) = 
 
(What it pays in n1 / 1 + i) + (What it pays in n2 / 1+i^2) + ...
 
200 = (110 / 1 + 0.1) + (121 / 1 + 0.1²)

Diskussion