Furst Co: Bond Yields. What is the YTM?

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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?

© BrainMass Inc. brainmass.com June 3, 2020, 4:44 pm ad1c9bdddf
https://brainmass.com/business/bond-valuation/furst-co-bond-yields-what-is-the-ytm-2503

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.

$2.19