SAC Colleges issued bonds 30 years ago that now have 4 years left to maturity. When they were issued, the coupon rate of these bonds was set at 9%. You are now considering purchasing these bonds at their listed price of 108 (not a typo). You believe bonds of similar risk are returning 8% but are unsure of this. If you buy the bonds at their current market price, what YTM will you earn? (6) 1 PV 108 FV PMT N 4 K

SAC Colleges issued bonds 30 years ago that now have 4 years left to maturity. When they were issued, the coupon rate of these bonds was set at 9%. You are now considering purchasing these bonds at their listed price of 108 (not a typo). You believe bonds of similar risk are returning 8% but are unsure of this. If you buy the bonds at their current market price, what YTM will you earn? (6) PV FV PMT SAC Colleges issued bonds 30 years ago that now have 4 years left to maturity. When they were issued, the coupon rate of these bonds was set at 9%. You are now considering purchasing these bonds at their listed price of 108 (not a typo). You believe bonds of similar risk are returning 8% but are unsure of this. If you buy the bonds at their current market price, what YTM will you earn? (6) PV FV PMT