Question

Atlantis Fisheries issues zero coupon bonds on the market at a price of $419 per bond....

Atlantis Fisheries issues zero coupon bonds on the market at a price of $419 per bond. If these bonds are callable in 5 years at a call price of $547, what is their yield to call? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Yield to call ____

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Answer #1

Yield to call is calculated using the RATE function as follows:-

=RATE(nper,pmt,pv,fv)

=RATE(5,0,-419,547)

=5.48%

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