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15. What is the yield-to-maturity (YTM) of a Caesar’s corporate bond that is selling for $1,066.23...

15. What is the yield-to-maturity (YTM) of a Caesar’s corporate bond that is selling for $1,066.23 today, is paying an annual coupon of 15% (the next coupon payment is one year from today), and matures in 20 years?

(a) 17.0% (b) 16.0% (c) 15.0% (d) 14.0% (e) 13.0%

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Answer #1

B C D E F G H I J K L Price of bond is equal to present value of future cash flow discounted at required yield 1066.23 15% Pr

D18 A Price of bond is equa BEHOV AWNA Price Coupon Years YTM 1066.23 0.15 20 =RATE(C7,-1000*С6,C5,-1000) Note: par value ass

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