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A bond with 20 years to maturity, a 10% coupon rate that pays coupons semi-anually, and...

A bond with 20 years to maturity, a 10% coupon rate that pays coupons semi-anually, and is selling for $875 will have a yield to maturity of? Please Answer Using Excel!!!

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Answer #1

Please see the picture below. I have done the working in excel. Inputs are hard coded figures on the left hand side (column A, B & C).

Outputs are in column E and I have shown the formula used in each cell of column E in the corresponding cell in column F. So, please pay special attention to column F.

The final answer is 11.62% highlighted in cell with yellow color.

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