Using a Spreadsheet to Calculate Yield to Maturity. What is the yield to maturity on the following bonds; all have a maturity of 10 years, a face value of $1,000, and a coupon rate of 9 percent (paid semiannually).

The bonds’ current market values are $945.50,

$987.50, $1,090.00, and $1,225.875, respectively. (LG 3-2)

Market Value Number of Payments Periodic Coupon Payment, $

Face Value ⇒

The Yield to Maturity Will Be 945.50   10 × 2 = 20 1,000(0.09)/2 = 45 $1,000    9.87%

987.50   20 45   1,000 9.19 1,090.00   20 45   1,000 7.69 1,225.875 20 45   1,000 5.97 AppendixLO1