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(Yield to maturity Assume the market price of a 12-year bond for Margaret Inc. is $800, and it has a par value of $1,000. The
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Answer #1

Exact YTM can be calculated only by using Excel or financial calculator.

$1,000 $800 2 Face Value 3 Price of Bond today 4 Years to Maturity 5 Coupon Rate 6 Frequency 7 YTM 7.00% 9.88%1000 800 12 2 Face Value 3 Price of Bond today 4 Years to Maturity 5 Coupon Rate 6 Frequency 7 YTM 8 0.07 =B6*RATE(B4*B6,B5*B

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