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The market price is $543 for a 10-year bond ($1,000 par value) that pays 8 %...

The market price is $543 for a 10-year bond ($1,000 par value) that pays 8 % annual interest, but makes interest payments on a semiannual basis (4% semiannually). What is the bond’s yield to maturity?

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Answer #1
Yield to maturity is the yield an investor earns it thye hold investment till maturity.
Yield to maturity = =rate(nper,pmt,-pv,fv)
= 9.01%
Where,
nper number of period 20
pmt coupon payment 1000*4.0% = $       40.00
pv current value $     543.00
fv Future Value = $ 1,000.00
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