Assuming that this bond trades for $1,035.44, then the YTM for this bond is equal to ________
The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually.
Answer:
FV = $1,000
PMT = 40 (80 / 2)
N = 30 (15 × 2)
PV = -$1,035.44
Compute I = 3.8 × 2 = 7.6 or 7.6%
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