Facebook has just issued its first bond. Its a 10-year issue with $1,000 face value and a 4% coupon rate. What is the r for
Facebook has just issued its first bond. Its a 10-year issue with $1,000 face value and a 4% coupon rate. What is the r for this bond?
Hint, r is in time units of 6 months, with semi-annual compounding.
(Do not round intermediate calculations and do not enter your answer as a percent. Round your answer to 3 decimal places, e.g., 0.315 instead of 31.5%.)
Facebook has just issued its first bond. Its a 10 year issue with $1,000 face value and a 4% coupon rate. What is the yield to maturity?
(Do not round intermediate calculations and do not enter your answer as a percent. Round your answer to 3 decimal places, e.g., 0.315 instead of 31.5%.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Answer The term r in this case refers to the yield to maturity YTM expressed in semiannual periods W...
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Step: 2
Step: 3
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Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
