Answer:
YTM = 5.45%
Step-by-step explanation:
Here, we are interested in calculating the yield to maturity.
Mathematically;
Annual coupon=1000*4.3%=43
YTM=[Annual coupon+(Face value-Present value)/time to maturity]/(Face value+Present value)/2
=[43+(1000-870)/18]/(1000+870)2
=5.45%
onc
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