Corporate Finance
Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Chapter 8, Problem 6QAP
Summary Introduction

Introduction: The term Bonds refers to the financial instruments by which a company raises funds by issuing bonds at a fixed coupon rate for a fixed tenure. YTM refers to the required rate of return on the bond to equalize the value of a current bond with the present value of all future cash flows.

To calculate: The yield to maturity of the bond.

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A Japanese company has a bond outstanding that sells for 95 percent of its ¥100,000 par value. The bond has a coupon rate of 6.2 percent paid annually and matures in 18 years.   What is the yield to maturity of this bond
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Corporate Finance

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