Question
A bond sold by NVDIA Corp. has a face value on $100, a coupon payment of $6 per year, and a maturity of 4 years.
A bond sold by NVDIA Corp. has a face value on $100, a coupon payment of $6 per year, and a maturity of 4 years. The first coupon payment occurs a year from now. The market price is $80, what is the YTM?
You can use Excel's IRR function to solve this one. There will be 4 cash flows for the 4 years of $6, $6, $6 and $106.
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Business Law
Authors: Henry Cheeseman
10th Edition
0134728785, 978-0134728780
