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    Zota Inc: A Bond's Yield to Maturity

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    Zota Inc. has a bond issue outstanding with 8 years remaining to maturity, a coupon rate of 10% with interest paid annually, and a par value of $1000.

    If the current market price of the bond is $814.45, what is the bond's yield to maturity?

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    Solution Preview

    In a financial calculator, we input:
    FV = 1000
    coupon ...

    Solution Summary

    This solution calculates a bond's yield to maturity if the market price of the bond is $814.45.