Math  /  Finance

Question Find the current yield and yield to maturity of an AT&T bond with 10 years until maturity, $1,000\$ 1,000 nominal value, 8% coupon rate, and selling price of $1,100\$ 1,100.

Studdy Solution
This equation can't be solved algebraically for YTM. We need to use a financial calculator or software to find the root of this equation. After doing so, we find that the yield to maturity is approximately 6.76%.
So, the current yield on the bond is 7.27% and the yield to maturity is approximately 6.76%.

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