YRK bonds currently sell for $870 and have a par value of $1,000. They pay a...

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YRK bonds currently sell for $870 and have a par value of $1,000. They pay a...

YRK bonds currently sell for $870 and have a par value of $1,000. They pay a $50 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,080. What is their yield to maturity (YTM)?

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Answer 1

Answer #1

Exact YTM of the bond is calculated using Excel or financial calculator

1 2 Face Value 3 Price of Bond today 4 Years to Maturity 5 Coupon Rate 6 Frequency 7 YTM $1,000 $870 15 5.00% 6.37%

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Answer 2

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YRK bonds currently sell for $870 and have a par value of $1,000. They pay a...

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YRK bonds currently sell for $870 and have a par value of $1,000. They pay a $50 annual coupon and have a 15-year maturi...

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Homework Answers

Add Answer to: YRK bonds currently sell for $870 and have a par value of $1,000. They pay a...

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YRK bonds currently sell for $870 and have a par value of $1,000. They pay a...