Question

mgm issued 20-year bonds 4 years ago at a coupon rate of 8.5 percent. the bonds make semiannual payments. if these bond...

mgm issued 20-year bonds 4 years ago at a coupon rate of 8.5 percent. the bonds make semiannual payments. if these bonds currently sell for 91.4 percent of par value, what is the YTM?
0 0
Add a comment Improve this question Transcribed image text
Answer #1

YTM is calculated using the RATE function as follows:-

=RATE(nper,pmt,pv,fv)

=RATE(16*2,8.5%/2*100,-91.4,100)*2

=9.56%

Add a comment
Know the answer?
Add Answer to:
mgm issued 20-year bonds 4 years ago at a coupon rate of 8.5 percent. the bonds make semiannual payments. if these bond...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT