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A japanese company has a bond outstanding that sells for 87% f it's 100,000 par value. the bond has a coupon rate of 4.3 percent paid annually and matures in 18 years, what is the yield f maturity of this
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A japanese company has a bond outstanding that sells for 87% f it's 100,000 par value. the bond has a coupon rate of 4.3 percent paid annually and matures in 18 years, what is the yield f maturity of this bond

User Rogerthat
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Answer:
Here we need to find the YTM of a bond. The equation for the bond price is: P = ÂĄ87,000 = ÂĄ4,300(PVIFA R %,18 ) + ÂĄ100,000(PVIF R %,18 ) Notice the equation cannot be solved directly for R . Using a spreadsheet, a financial calculator, or trial and error, we find: R = YTM = 5.45%
User Mrdeadsven
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