Finance

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XYZ bonds have a 7.60 percent coupon and pay interest annually. The face value is $1,000 and the current market price is $1,062.50 per bond. The bond matures in 16 years. What is the yield to maturity?

  • Finance -

    coupon is=7.60% * 1000=76
    Face value=1000
    Current market price=1062.50
    No of years=16

    Kd=C (fcv-P) ¡1/2(fcv P)
    N
    Note
    P is current market price
    Fcv is our face value.
    put the variale in the formula and get your answer

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