ABC has a bond trading on the secondary market with a time to maturity of five...
ABC has a bond trading on the secondary market with a time to maturity of five years. The bond pays a semi-annual coupon and has a coupon rate of 7.6%. The bonds currently trade at $850 and have a face value of $1,000. What is the yield to maturity? (express as an APR)
Homework Answers
Using the calculator or Rate function in excel:
| Calculator | |
| Inputs: | |
| PV | (850.000) |
| PMT | 76.0 |
| FV | 1,000.00 |
| N | 5 |
| Output: | |
| I/Y = IRR | 11.73% |
YTM is 11.73%
please rate.
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