Question
For this question Macro Corporation issued 50-year $80million of face value bonds that have a coupon rate of 6% paid semi-annually. The bonds were issued
For this question "Macro Corporation issued 50-year $80million of face value bonds that have a coupon rate of 6% paid semi-annually. The bonds were issued at 97. Given this information, calculate the yield to maturity."
Can someone please show me step-by-step how to find the YTM (yield to maturity) algebraically??
The formula I will be using for this question is attached in an image with this question. Please solve the question based on that formula because that's what I am supposed to be doing. The r in this case would be the YTM I'm looking for.
PV = r 1 1 + FV (1+r) (1+r)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The formula for calculating the yield to maturity YTM of a bond is as follows Price ...
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Step: 2
Step: 3
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Intermediate Accounting IFRS Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
2nd Edition
1118443969, 978-1118443965
