question archive Company D's bonds make an annual coupon interest payment of 745% every year
Company D's bonds make an annual coupon interest payment of 745% every year
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Company D's bonds make an annual coupon interest payment of 745% every year. The boods have a par value of S1000, a curent price of $875, and mature in 12 years. What they may on these and O2.6835 O . 7.25% Q5.17% d. 335 Oe9215
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The yield to maturity is computed as follows:
Enter the below variables in the financial calculator as follows:
FV = 1,000
PV = - 875
PMT = 74.5 (7.45% x 1,000)
N = 12
Press CPT and then I/Y. It will give I/Y equal to 9.21% Approximately
The YTM by using excel as follows:
= RATE(N,PMT,PV,FV)
= RATE(12,74.5,-875,1000)
I/Y will be equal to 9.21%
