, t2, , tn. Its
yield to maturity is the single rate y that solves: Note that the higher the price, the lower the
yield. Example • Recall the 1.5-year, 8.5%-coupon bond. • Using the zero rates 5.54%, 5.45%,
and 5.47%, the bond price is 1.043066 per dollar par value. • That im[r]