Question

The Salem Company bond currently sells for $522.76 has a coupon interest rate of 6​%and a...

The Salem Company bond currently sells for $522.76

has a coupon interest rate of 6%and a $ 1000par value, pays interest annually,and has 10 years to maturity.  

a. Calculate the yield to maturity

(YTM)

on this bond.

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Answer #1

YTM needs to be calculated using Excel or financial calculator

A В C 1 $1,000 2 Par Value 3 Coupon Rate 4 Years To Maturity 5 Current Price 6 Frequency of coupon 6% 10 years 522.76 1 annuaA В C 1 2 Par Value 1000 3 Coupon Rate 4 Years To Maturity 5 Current Price 0.06 10 years 522.76 Frequency of coupon 6 annual

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