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Iris Corp issued bonds with a coupon rate of 15%, pay coupons annually, have 6 years...

Iris Corp issued bonds with a coupon rate of 15%, pay coupons annually, have 6 years remaining to maturity, and are currently priced at $950 per bond. What is the yield to maturity?

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Answer #1

Where,

C = Coupon / Interest Payment

F = Face Value

P = Price

n= Years to maturity.

  or Say 16.24%

Yield to maturity is 16.24%

Calculation of C = F x CR = $1,000 x 15% = $150 (Where, F = Face value & CR = Coupon Rate)

Assumption :

(1) Face value of bond is $1,000

If any help require regarding to que. please comment i will help you.

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