Suppose that a commercial bank wants to buy treasury bills. These instruments pay $5,000 in one year and are currently selling for $5,012. What is the yield to maturity of these bonds? is this a typical situation? why?.

Values are the benchmarks or ideals by which we judge the acts, traits, possessions, or circumstances of others. Values that are embraced by many include those of beauty, honesty, justice, peace, and charity.

Yield to maturity (YTM) is the overall rate of return that a bond will have earned once all interest payments are made and the principal is repaid. In essence, YTM represents the internal rate of return (IRR) on a bond if held to maturity. used on the Yield to Maturity (YTM) of a Debt Fund, you can not only determine the potential returns but also get an idea of the risk associated with your investment

Therefore, The yield to maturity of these bonds Faces Value = $5,000 Current Price = $5,012.

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