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Can someone help me identify the appropriate formula? Question: A bond of Boston Scientific Corp is...

Can someone help me identify the appropriate formula?

Question: A bond of Boston Scientific Corp is trading at 113.22, pays a coupon rate of 6.250%, and matures in three semesters. Using the bond yield calculator, its yield to maturity is found to be _______.

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Answer #1

Using financial calculator
Input: FV= 100, PMT=6.25%*100 = 6.25 ; N = 3 ; PV= -113.22

Hence YTM = I/Y in the calculator

which is 1.69%

This can be computed in excel using rate function as

Sign in Book1 - Excel 《Product Activation Failed) AutoSave 수 Share Tell me what you want to do File Insert Draw Page Layout Formulas Data Review View Help Home Wrap Text Percentage 田FF Calibri Conditional Fornat as Cell Insert Delete Fornat FormattingTable Styles- 、. Sort & Find & Editing : Filter-Select- Paste u . 녀 . 2.A 호 들經垣@werge & Center-5 . % , Styles Cells Number Alignment Clipboard C8 xRATE(3,6.25,-113.22,100) 4 -RATE(3,6.25,-113.22,100) 10 12 13 14 15 16 17 18 Sheet1 Shet2 + 100 Ready c/ ENG 4:55 AM

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