Evans Emergency Response bonds have 7 years to maturity. Interest is paid semiannually. The bonds have...

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Evans Emergency Response bonds have 7 years to maturity. Interest is paid semiannually. The bonds have...

Evans Emergency Response bonds have 7 years to maturity. Interest is paid semiannually. The bonds have a $1,300 par value and a coupon rate of 6 percent. If the price of the bond is $1,082.52, what is the annual yield to maturity?

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Answer 1

Answer #1

For YTM Calculation to be exact, you need Excel or Financial calculator. Manually, you could only calculate an approximate YTM

B C D 1 2 Par Value 3 Coupon Rate 4 Years To Maturity 5 Current Price 6 Frequency of coupon 7 8 YTM $1,300 6% 7 years $ 1,082 1 1300 0.06 years 1082.52 2 Par Value 3 Coupon Rate 4 Years To Maturity 5 Current Price 6 Frequency of coupon 7 8 YTM 9 semi-

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Answer 2

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