A Japanese company has a bond outstanding that sells for Yen 105.43 of its Yen 100,000 par value. The bond has a coupon rate of 3.4% paid annually and matures in 16 years. What is the YTM of this bond. Please note that you need to use this formula for the exam

We can find the approx. YTM replacing dollar by Yen

YTM = {annual dollar coupon payment + [(par value - market price)/remaining maturity in years]}/[(par value + price)/2]

1. 2.98%
2. 2.34%
3. 3.54%