11. An investor purchases a $1,000 par value bond with 15 years to maturity at $985. The bond pays $80 of coupon interest annually. The investor plans to hold the bond for 5 years and expects to sell it at the end of the holding period for 94 percent of its face value. What is his/her expected yield? 1) Write the equation which expresses the yield to maturity 2) Fill in the values that you will put into a financial calculator Button in N Calculator CE/C 2ND CE/C 2ND FV IVY PV PMT FV 3) Compute the YTM using a calculator. 12. Find the yield to maturity of a bond with 5 years to maturity, par value of $1,000, and a coupon rate of 8 percent (annual payments). The bond currently sells at 98.5 percent of par value 1) Write the equation which expresses the yield to maturity. 2) Fill in the values that you will put into a financial calculator ITY CE/C 2ND CE/C 2ND FV Button in N Calculator PV PMT FV 3) Compute the YTM using a calculator