To calculate the yield, we need to consider the original price of the bonds, the interest payments received annually, and the remaining years until maturity. Here's how we can calculate it:
1. Determine the total interest payments over the remaining years:
The face value of each bond is 10 million, and the interest rate is 5% per year. So, the annual interest payment per bond is 10 million * 5% = 0.5 million.
Since there are 10 bonds in the lot, the total annual interest payment is 0.5 million * 10 = 5 million.
2. Calculate the remaining years until maturity:
The bonds have a term of 5 years, and the company holds them in year t3. So, the remaining years until maturity is 5 - 3 = 2 years.
3. Calculate the total interest payments for the remaining years:
The total interest payments for the remaining years are 5 million * 2 = 10 million.
4. Calculate the yield on the bond lot:
The original price of the bonds is 100 million, and the lot was sold for 120 million. The yield can be calculated as:
(Total interest payments / Original price) * 100
= (10 million / 100 million) * 100
= 10%
Therefore, the yield on this batch of bonds for Enterprise A is 10%.
Please note that this calculation assumes that the bond lot was sold at face value and that there are no other factors affecting the yield. If there are additional details or factors to consider, the calculation may vary.