ABC's 15-year bond is selling for $875 today. This bond has a par value of $1000....
ABC's 15-year bond is selling for $875 today. This bond has a par value of $1000. It has a coupon rate of 8 percent per year. What is its yield to maturity, if it has 11 years before expiration? (Answer must be in excel)
c. At what price will the yield to maturity equal to the coupon rate?
Homework Answers
PV = -875, FV = 1000, N = 11, PMT = 80
use rate function in Excel
yield to maturity = 9.9172%
c. when YTM = coupon rate, price = par value = 1000
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