Ask Question
23 May, 04:37

A bond has a $1,000 par value, 11 years to maturity, and pays a coupon of 4.75% per year, semiannually. The bond can be called in five years at $1,050. If the bond's price is $797.92, what is its annual yield to maturity

+1
Answers (1)
  1. 23 May, 04:40
    0
    The answer is 7.48

    Explanation:

    YTM = [ (C + (FV-PV) / t) ] / [ (FV + PV) / 2]

    FV = 1,000

    PMT = 47.50/2 = 23.75

    T = 11

    PV = - 797.92

    CPT I = 3.74

    AnnualizeD = 7.48
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A bond has a $1,000 par value, 11 years to maturity, and pays a coupon of 4.75% per year, semiannually. The bond can be called in five ...” 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