Clock and Cane Company has 6.8 percent, semiannual coupon bonds on the market with twelve years...

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Clock and Cane Company has 6.8 percent, semiannual coupon bonds on the market with twelve years...

Clock and Cane Company has 6.8 percent, semiannual coupon bonds on the market with twelve years left to maturity. If the bond currently sells for $989.45, what is its YTM?

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Answer 1

Answer #1

Exact YTM needs to be calculated by Excel or Financial calculator. We can't calculate exact YTM manually.

A В C D 1 $1,000 2 Par Value $989.45 3 Current Value 4 Coupon Rate 6.80% 5 Years to Maturity 12 6 Frequency 2 semi-annual 7 8 A В C 1 2 Par Value 3 Current Value 4 Coupon Rate 5 Years to Maturity 6 Frequency 1000 989.45 0.068 12 semi-annual 2 7 =B6*RA

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Clock and Cane Company has 6.8 percent, semiannual coupon bonds on the market with twelve years...

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