Explore BrainMass

# Furst Co: Bond Yields. What is the YTM?

Not what you're looking for? Search our solutions OR ask your own Custom question.

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?

#### 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.

\$2.49

### Free BrainMass Quizzes

• Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

• Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

• Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.