Problem 1: Using a Spreadsheet to Calculate Yield to Maturity What is the yield to maturity...

Question

Question

Problem 1: Using a Spreadsheet to Calculate Yield to Maturity

	What is the yield to maturity on the following bonds; all have a maturity of 10 years and a face value of
	$1,000, and a coupon rate of 9 percent (paid semiannually). The bonds' current market values are $945.50,
	$987.50, $1,090.00, and $1,225.875, respectively.



	Market	Total	Coupon	Periodic Coupon	Face	SEMI-ANNUAL	=>	Yield to
	Value (PV)	Payments (NPER)	Rate (ANNUAL)	Payment (PMT)	Value (FV)	YTM (RATE)		Maturity
	$945.50	20	9%	$45	$1,000		=	FUNCTION
	$987.50	20	9%	$45	$1,000		=
	$1,090.00	20	9%	$45	$1,000		=
	$1,225.875	20	9%	$45	$1,000		=

business finance

Answer 1

Answer #1

A B Market Value (PV) Total Payments (NPER) fx =RATE(B2, D2, -A2, E2) D Periodic Coupon Rate Face Value Coupon (ANNUAL) (FV)

Answer 2

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