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23 April, 13:03

Collingwood Homes has a bond issue outstanding that pays an 8.5 percent coupon and has a yield to maturity of 9.16%. The bonds have a par value of $1,000 and a market price of $944.30. Interest is paid semiannually. How many years until the bond matures

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  1. 23 April, 14:34
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    Answer: 9.16%

    Explanation:

    N=33; PV=-944.3; PMT=42.5; FV=1000 Solve for I

    I = 4.58 then times 2 will give you 9.16%
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