Two years ago, Weslo Corp. issued 25-year bonds at a coupon rate of 5.3 % paid...

Two years ago, Weslo Corp. issued 25-year bonds at a coupon rate of 5.3 % paid semi-annually. If the current price of these bonds is 105% of par value, what is YTM?

Select one:

a. 4.9%

b. 4.93%

c. 4%

Expert Solution

Ans is b.4.93%

Calculations-

As no method was mentioned I have solved the problem using excel function.

Please upvote if the answer is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 2 years ago

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