Question

The Sisyphean Company has a bond outstanding with a face value of $ 5,000 that reaches...

The Sisyphean Company has a bond outstanding with a face value of $ 5,000 that reaches maturity in 10 years. The bond certificate indicates that the stated coupon rate for this bond is 9.8​% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $ 5,198​, then the YTM for this bond is closest​ to:

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Answer #1

Exact YTM calculation can only be done using Excel or financial calculator. Manually, we can calculate an approximate YTM only.

Α 12 Par value 13 Coupon 14 Current Price 15 Years to Maturity 16 Frequency $5,000 $490 $5,198.00 10 2 semi-annual 17 9.19% 1B 12 Par value 13 Coupon 14 Current Price 15 Years to Maturity 16 Frequency 17 18 YTM 5000 =B12*9.8% 5198 10 semi-annual =B16

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