Johnston, Inc. is selling bonds for $775.37. Each bond has an 8% coupon rate and makes payments semiannually. The bond matures in 25 years. What is the bond’s yieldtomaturity?
Shieldsly, Inc. has a 9 percent coupon bond that matures in 5 years. The bond pays interest annually. What is the market price of a $1,000 face value bond if the yield to maturity is 7.56 percent?

1)  Yield to maturity  =rate(nper,pmt,pv,fv)*2  
= 10.57%  
Where,  
nper  =  Number of period  =  25*2  =  50  
pmt  =  Coupon Payment  =  1000*4%  =  $ 40.00  
pv  =  Price  =  $ 775.37  
fv  =  Face Value  =  $ 1,000.00  
2)  Price of bod  =PV(rate,nper,pmt,fv)  
= $ 1,058.17  
Where,  
rate  =  Discount rate  =  7.56%  
nper  =  Number of period  =  5  
pmt  =  Coupon Payment  =  $ 90.00  
fv  =  Face Value  =  $ 1,000.00  
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