Question

# Calculate the yield to maturity on the following bonds: A 9.4 percent coupon (paid semiannually) bond,...

Calculate the yield to maturity on the following bonds:

A 9.4 percent coupon (paid semiannually) bond, with a \$1,000 face value and 19 years remaining to maturity. The bond is selling at \$965.

An 8.4 percent coupon (paid quarterly) bond, with a \$1,000 face value and 10 years remaining to maturity. The bond is selling at \$901.

An 11.4 percent coupon (paid annually) bond, with a \$1,000 face value and 6 years remaining to maturity. The bond is selling at \$1,051.

please show and explain all steps on a financial calculator as well

#### Homework Answers

Answer #1
 1) Yield to maturity = =rate(nper,pmt,-pv,fv)*2 Where, = 9.81% nper 19*12/6 = 38 pmt 1000*9.4%*6/12 = \$       47.00 pv = \$     965.00 fv = \$ 1,000.00 2) Yield to maturity = =rate(nper,pmt,-pv,fv)*4 Where, = 9.98% nper 10*12/3 = 40 pmt 1000*8.4%*3/12 = \$       21.00 pv = \$     901.00 fv = \$ 1,000.00 3) Yield to maturity = =rate(nper,pmt,-pv,fv) Where, = 10.84% nper 6 = 40 pmt 1000*11.4% = \$     114.00 pv = \$ 1,051.00 fv = \$ 1,000.00
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