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20 May, 20:06

The bonds issued by Stainless Tubs bear an 8 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $952. What is the yield to maturity?

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  1. 20 May, 20:14
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    8.69%

    Explanation:

    Face value (FV) = $ 1,000.00

    Coupon rate=8.00%

    Interest per period (PMT) = $30.00

    Bond price (PV) = $ 952.00

    Number of years to maturity 11

    Number of compounding periods till maturity (N) 22

    Bond Yield to maturity RATE (NPER, PMT, PV, FV) * 2 = 8.69 %
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