Ask Question
2 October, 18:34

The texas instruments company has 9 percent coupon bonds on the market with seven years left to maturity. the bonds make annual payments. if the bond currently sells for $874.60, what is its ytm?

+5
Answers (1)
  1. 2 October, 19:00
    0
    To Calculate YTM,

    YTM = {C + (F-P) / n} / (F+P) / 2

    where C = coupon rate,

    F = face value

    P = price

    n = no. of years

    Therefore, YTM = {90 + (1000-874.6) / 7} / (1000+874.6) / 2

    => 11.72%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The texas instruments company has 9 percent coupon bonds on the market with seven years left to maturity. the bonds make annual payments. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers