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Furst Co: Bond Yields. What is the YTM?

Please explain how to do the following on a spreadsheet. I am having difficulty in doing this.

Furst Co. issued 12-year bonds 2 years ago at a coupon rate of 8.4 percent. The bonds make semiannual payments. If these bonds currently sell for 87 percent of par value, what is the YTM?

Solution Preview

Since the bonds are selling at a discount, we know that the YTM must be higher than the coupon rate. I ...

Solution Summary

The solution explains how to use an Excel function to arrive at the answer for the yield to maturity percentage.

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