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A 10 year 8% coupon (semiannual) bond sells for $1,100, what is the bond holder's YTM?

A 10 year 8% coupon (semiannual) bond sells for $1,100, what is the bond holder's YTM?

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Answer #1
Nper Number of Semi annual periods to maturity=10*2 20
Pmt Semi annual coupon payment =(1000*8%)/2 $40
Pv Price of bond $1,100
Fv Payment at maturity $1,000
RATE Semi annual Yield to maturity 3.31%
(Using RATE function of excel)
Annual Yield to Maturity(YTM)=3.31*2 6.62%

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