Question

Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 6.3 percent. The bond sells for $1,031.92 and matures in 19 years. The par value is $1,000. What is the YTM of the bond?

Multiple Choice

• 3.01%

• 4.51%

• 5.41%

• 6.02%

• 5.72%

Answer 1

COUPON RATE 6.30% YEARS TO MATURITY 19 38 (years to maturity x 2) NPER 31.5 (face value x coupon rate)/2 PMT $1,000.00 FACE VALUE $1,031.92 PRICE PV 3.01% RATE = rate(nper,pmt,-pv, fv) rate(38,31.5,-1031.92, 1000) 6.02% YIELD TO MATURITY RATE X 2 [3.01% 2)