A $1,000 par value bond sells for $1,216. It matures in 20 years, has a 14...
A $1,000 par value bond sells for $1,216. It matures in 20 years, has a 14 percent coupon, pays interest semiannually. The bond's yield to maturity is: a. 11.26
Please explain using a financial calculator
Homework Answers
Semi annual coupon = 1000 * 14% *1/2 = 70
Press 70 then Press PMT then
Press -1216 and press PV then
Press 1000 and Press FV and
then Press 40 (20*2) and then press N
the press CPT and Press I/Y and
Press multiply and then 2
Result 11.26%
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