Question
The maturity of the bond is 15 years, with a par value of $1,000. The coupon rate is 8% with semi-annual coupon payments. The price
The maturity of the bond is 15 years, with a par value of $1,000. The coupon rate is 8% with semi-annual coupon payments. The price of the bond is $724.70.
Using Excels Solver, find the semiannual interest rate that will make the present value of PV of all cash flows equal to $724.70.
Use Excels Yield function to find the yield to maturity.
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Principles Of Financial Accounting Ch 1 17
Authors: Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton
1st Edition
0077370457, 9780077370459
