West Corp. issued 20-year bonds two years ago at a coupon rate of 8.3 percent. The...

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West Corp. issued 20-year bonds two years ago at a coupon rate of 8.3 percent. The bonds make semiannual payments. If these b

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Answer 1

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Answer #1

Number if years left =20-2 =18
Number of Periods =18*2 =36
Par Value =1000
Price =104%*1000 =1040
Semi annual Coupon =1000*8.3%/2 =41.5

YTM using excel formula =2*RATE(36,41.50,-1040,1000) =7.88%

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Answer 2

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