Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The bonds would be 29-year to maturity, carry a 8.02 percent annual coupon, and have a $1,000 par value. Blue Crab, Inc. has determined that these bonds would sell for $1,191 each. What is the yield to maturity for these bonds?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).

You should use Excel or financial calculator.

PLEASE SOLVE IT LIKE EXAMPLE BELOW

Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The bonds would be 27-year to maturity, carry a 13.94 percent annual coupon, and have a $1,000 par value. Blue Crab, Inc. has determined that these bonds would sell for $1,190 each. What is the yield to maturity for these bonds?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).

You should use Excel or financial calculator.

Your Answer:

Step 1: Calculate annual coupon payments: $1,000*13.94% = 139.40 Step 2: Open Excel. Click Formulas Financial find function RATE Enter: Nper 27 Pmt 139.40 PV -1190 (must be entered as a negative number) FV 1000 Type 0 Get the answer 11.61% =RATE(27,139.4,-1190,1000,0) = 11.61% (Excel shows the answer as a whole number. You should increase the number of decimals)