Question 5 Linville Corporation issued 15-year, par $1,000 bonds ten years ago at a coupon rate of 5 percent. The bonds make semi-annual payments. If these bonds currently sell for 90 percent of par value, what is its yield to maturity (YTM)? 15 year bond issued 10 years ago 5.005 years left on the bond Time 0 Coupon (C) 1 Par Value (F) \begin{tabular}{lll} 2 & PB \\ 3 & Price of a bond = PV(Coupon Payments) + PV(Par Value) \\ \hline 5 & Coupon Rate \end{tabular} \begin{tabular}{l|c} 4 & Price of a bond = PV(Coupon Payments) + PV(Par Value) \\ \hline 5 & Coupon Rate \\ 6 & C= Coupon Payment =mCouponRate Par Value \end{tabular} 0 Par Value PB=C[i1(1+i)n1]+(1+i)nF]