Question

XYZ bonds have a 7.60 percent coupon and pay interest annually. The face value is $1,000 and the current market price is $1,062.50 per bond. The bond matures in 16 years. What is the yield to maturity?
coupon is=7.60% * 1000=76
Face value=1000
Current market price=1062.50
No of years=16

Kd=C (fcv-P) ¡1/2(fcv P)
N
Note
P is current market price
Fcv is our face value.
put the variale in the formula and get your answer

Related Questions

current yield for annual payments bonds have 25 years remaining to maturity. the bonds have a face... Johnson Motors’ bonds have 0 years remaining to maturity. Interest is paid annually, the bonds have... assume a $1000 face value bond has a coupon rate of 8.5 percent pay interest semi-annually, ahd has...