Question
Two years ago Ford issued10 year bonds with a 5% coupon rate (semiannual APR) (i.e. $25 per 6 months). You manage the Eccles School endowment
Two years ago Ford issued10 year bonds with a 5% coupon rate (semiannual APR) (i.e. $25 per 6 months).
You manage the Eccles School endowment and your broker is offering you the bonds at $985 each. If you buy them and Ford makes all its payments,what will be your yield to maturity on the investment, stated as an APR?
Answer in percent terms, to at least three digits, i.e. 3.11% = enter 3.11
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
