Your firm has just issued a 20-year $1,000.00 par value, 10% annual coupon bond for a net price of $964.00. What is the yield to maturity? Use a financial calculator to determine your answer
A) 10.60%
B) 11.10%
C) 10.44%
D) 10.16%
Answer: C
Explanation: C)
Mode = P/Y = 1; C/Y = 1
Input 20 ? -964 100 1,000
Key N I/Y PV PMT FV
CPT 10.44%
Note that APR = EAR.
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Answer the following statement true (T) or false (F)
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