Question

NOTE PLEASE ALL ANSWERS MUST BE IN EXCEL FORMULA
X 5 ? X . HOME Calculating yield to maturity - Excel FORMULAS DATA REVIEW - Sign In FILE INSERT PAGE LAYOUT VIEW Paste B I U- - - A Alignment Number 8.12 oints Conditional Format as Cell Formatting Table Styles Styles Cells - Clipboard Font Skipped D17 А в E F G H I к eBook Print A Japanese company has a bond outstanding that sells for 91.53 percent of its $100,000 par value. The bond has a coupon rate of 3.4 percent paid annually and matures in 16 years. What is the yield to maturity of this bond? References 1/1/2000 1/1/2016 3.4% Settlement date Maturity date Annual coupon rate Coupons per year Face value (% of par) Bond price (% of par) Face value 100 91.530 ¥ 100,000 Complete the following analysis. Do not hard code values in your calculations. Leave the "Basis" input blank in the function. You must use the built-in Excel function to answer this question. Yield to maturity
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Answer 1

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YTM is calculated using YIELD function in Excel :

settlement = settlement date

maturity = date of maturity

rate = coupon rate

pr = price of bond as % par value

redemption = face value of bond as % of par

frequency = number of coupon payments per year.

YIELD is calculated to be 4.13%.

X Fax =YIELD(B1,B2,B3,B6,B5, B4) C B 1/1/2000 1/1/2016 3.40% 1 2 3 4 5 6 А settlment maturity annual coupon rate coupons per year face value bond price YTM 100.00 91.53 4.13%