Question

Y-Corp has bonds which sell for $1,165. The bonds have a 15-year maturity, and an annual coupon of $95. What is their yield to maturity

Answer 1

The yield to maturity is 7.62%

Step-by-step explanation:

The computation of the yield to maturity is shown below:

Given that

Par value = $1,000

NPER = 15 years

PMT = $95

PV = $1,165

The formula is shown below:

= RATE (NPER;PMT;-PV;FV;type)

AFter applying the above formula, the yield to maturity is 7.62%

And, the same is to be considered