Current Yield and YTM
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I have completed the problem but would appreciate it if someone could check my work. Thanks
9. Bonds of XYZ Corp. with a par value of $1,000 sell for $950, mature in 8 years, and have a 9% annual coupon rate paid semiannually. I used Excel for the YTM.
Thanks
Calculate the:
i. Current yield
$90 / 950 = 9.47
ii. Yield to maturity to the nearest whole percent.
YIELD("04/01/2000","04/01/2009",0.09,95,100,2)
= 9.85% or 10%
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9. Bonds of XYZ Corp. with a par value of $1,000 sell for $950, mature in 8 years, and have a 9% annual coupon rate paid semiannually. I used Excel for the YTM. ...
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