LO 2 7. Bond Yields. Stein Co. issued 15-year bonds two years ago at a coupon rate of 5.4 percent. The bondake semiannual payments. If these bonds currently sell for 94 percent of par value, what is the YTM?

LO 2 7. Bond Yields. Stein Co. issued 15-year bonds two years ago at a coupon rate of 5.4 percent. The bondake semiannual payments. If these bonds currently sell for 94 percent of par value, what is the YTM?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 10P

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Question

I need calculator and excel steps on how to do this one....book answer = 6.07%

O
LO 2
BOND YIELDS
t=15-2 = 132 = 26
coupon rate= .054
1,000
54/2 = 27
940
$1,000 par varuer
7. Bond Yields. Stein Co. issued 15-year bonds two years ago at a coupon
rate of 5.4 percent. The bondake semiannual payments. If these bonds
currently sell for 94 percent of par value, what is the YTM?
par
coupon p
PU
PMt
calculator steps
pu=-940
27
260
FV
11000
CPT IY
t =
=
?
=
940 =
940 (1) 26
1,000
1000
(1H) 26
3.03% vs
+
brate must be > 5.4
- 4000
Book Answer
27 [1-
O
T
+27 [ ]
1- (140736
r
O
O

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