Suppose that a bond has one year to maturity. The yield to maturity on the bond if it was bought for ​$1090.00 and has a ​$1300 face value with a coupon rate of 7​% is 
  
enter your response here​%. ​ (Round your response to the nearest whole​ number)

To calculate the yield to maturity (YTM) for a bond, we can use the following formula for bonds with one year to maturity:

\[
YTM = \frac{{C + (F - P)}}{P}
\]

Where:
- $ C $ is the annual coupon payment.
- $ F $ is the face value of the bond.
- $ P $ is the price of the bond.
- $ YTM $ is the yield to maturity.

Given:
- $ F = 1300 $ (face value)
- $ P = 1090 $ (purchase price)
- Coupon rate = 7%, so $ C = 0.07 \times 1300 = 91 $

Now, we can substitute these values into the formula:

\[
YTM = \frac{{91 + (1300 - 1090)}}{1090}
\]

Let's calculate that.The yield to maturity (YTM) for the bond is approximately **28%**.

Would you like any further details on the calculation or have any questions? 

Here are five related questions that might interest you:
1. How is the yield to maturity affected if the bond price decreases?
2. What is the difference between current yield and yield to maturity?
3. How would the YTM change if the bond had a longer maturity period?
4. How does the coupon rate impact the bond price and YTM?
5. What are the risks associated with investing in bonds with a high YTM?

**Tip:** The yield to maturity takes into account both the bond's coupon payments and any gain or loss if held to maturity.

Suppose that a bond has one year to maturity. The yield to maturity on the bond if it was bought for ​$1090.00 and has a ​$1300 face value with a coupon rate of 7​% is ​%. ​ (Round your response to the nearest whole​ number)

Learn how to calculate the yield to maturity (YTM) for a bond with one year to maturity, bought for $1090, with a $1300 face value and a 7% coupon rate. This detailed guide walks through the YTM formula step-by-step, perfect for students in finance and business studies.

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