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Calculate the yield-to-maturity on a Disney bond that matures in 13 years, pays 7.0% coupon semi-annually, with a current price of $1480.26, bond has a
Calculate the yield-to-maturity on a Disney bond that matures in 13 years, pays 7.0% coupon semi-annually, with a current price of $1480.26, bond has a par value of $1000. Compare the calculated result to the result conducted by Bloomberg as in the figure below and tell the difference between two methods
DIS 7 03/01/2032 Corp YAS - Related Functions Menu DIS 7 03/01/32 Corp Settings 1) Yield & Spread 2) Graphs 3) Pricing 4) Descr DIS 7 03/01/32 ( 25468PBW5 ) Spread 20.24 bp VS 10yT 2 58 02/15/29 Price 148.026 102-00 Yield 2.598794 Mty 2.396380 S/A Wkout 03/01/2032 @ 100.00 Yld 66 Settle 03/31/19 03/29/19 Trade 03/28/19 Retro (Using input price) 2.598794 2.615678 Spreads 11) G-Sprd 12 I-Sprd 13) Basis 14) Z-Sprd 15) ASW 16) OAS Yield Calculations 13.8 Street Convention 13.3 Equiv 1 /Yr 22.9 Mmkt (Act/360 ) 15.3 True Yield 18.9 Current Yield 15.8 2.597775 4.729 After Tax (Inc 40.800 % CG23.800 %) 1.001852Step by Step Solution
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