# Salem Co Bond Yield to Maturity

The Salem Co. bond currently sells for $955, has a 12% coupon interest rate and $1,000 par value, pays interest annually, and has 20 years to maturity. Calculate the yield to maturity YTM

© BrainMass Inc. brainmass.com June 3, 2020, 9:51 pm ad1c9bdddfhttps://brainmass.com/business/bond-valuation/salem-co-bond-yield-maturity-202185

#### Solution Preview

bond yield to maturity

The Salem Co. bond currently sells for $955, has a 12% coupon interest rate and $1,000 par value, pays interest annually, and has 20 years to maturity. Calculate the yield to maturity YTM

We can determine YTM by using the following formula.

where B is the issued/current price

C is the coupon payment

r is the ...

#### Solution Summary

This solution is comprised of a detailed explanation to calculate the yield to maturity.

$2.19