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Stilley Resources bonds have 20 years left to maturity. Interest is paid annually, and the bonds...

Stilley Resources bonds have 20 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 17.5 percent. If the price of the bond is $1,720, what is the yield to maturity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

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Answer #1

Exact YTM needs to be calculated by using either Excel or Financial Calculator. Manually we can calculate an approximate YTM only.

ДА В 1 Par Value $1,000 2 Current pri $1,720 3 Coupon Ra 17.50% 4 Years to 20 6 YTM 9.39%A 1000 1720 0.175 1 Par Value 2 Current price 3 Coupon Rate 4 Years to Maturity 5 6 YTM 20 =RATE(B4,B3*B1,-B2,B1)

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