Question

Ngata Corp. Issued 15-year bonds 2 years ago at a coupon rate of 9.8 percent The bonds make semiannual payments. If these bonds currently sell for 104 percent of par value, what is the YTM? О 8.34% О 11.12% О 9.26% О 10.19% 0 4.63%

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solution: PV of bond PV of interest + PV of maturity value 1040-49(PVIFA r9626) + 1000*(PVIF 1%,26) r-4.63% since the coupon

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