12) A bond has five years to maturity, a $2000 face value, and a 5.8% coupon...

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Question

Answer 1

Answer #1

Yield to Maturity is arrived at 10% using the RATE function of Excel as follows:

Clipboard Font Alignment fRATE(D8,D9, D10*-1, D3,0) D11 A B C Cell Ref. Formula Values 2 3 Face Value (FV) $2,000 Given 4 Cou

Hence the answer is option B ie., 10.00%

Answer 2

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