Skye Industries Inc. bonds currently have 14 years remaining to maturity. What is the yield to maturity of the firm's semi-annual bonds if they carry a face value of $1,000, an annual coupon rate of 8% and have a current price of $885.16?

A) 8.00%
B) 8.75%
C) 9.50%
D) 10.25%


C
Explanation: C) Via Calculator: N = 14*2, PMT = 40, FV = 1,000, PV =- $885.16, Solve for ytm = 9.50%.

Business

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