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I am applying the yield to maturity formula as is in the picture but I am getting a different result, can you tell me what
I am applying the yield to maturity formula as is in the picture but I am getting a different result, can you tell me what I am doing wrong? Can you explain better? This is base on problem from the excel picture... if you try to input in excel and explain me? Thx
a. Years to maturity 10 Coupon rate 1000 par value 100 Annual Coupon payment Current price 1251.22 Current Yield 7.99 100/125 1.22 100 100- (1000 5.96 Yield to maturity 125 1.22/8) (1000 1251.22/2) Semi annual periods to maturity 16 10 Coupon rate Par value 1000 SemiAnnual Coupon payment 50 Current price 251.22 50+(1000 Yield to maturity 1251.22/16) (1000-1251.22/2) Annual Yield to maturity 3 2 6% Step by Step Solution
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