What are the YTC and YTM for a 20-year, 8% Semiannual coupon bond selling for $1,225, which can be called in 5 years for $1,085? What is the effective YTC? Would you expect to earn YTM or YTC on this bond and why? Also, show the formula and entries on a financial calculator.© BrainMass Inc. brainmass.com June 3, 2020, 6:20 pm ad1c9bdddf
In a calculator:
Number of periods = 20*2 =40
Future value = 1000
semiannual payment = 1000*8% / 2 = 40
present value ...
In a series of calculations, the response shows the formulas and the answers.