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need it asap An investor is considering a bond priced at $953 with a face value...

need it asap An investor is considering a bond priced at $953 with a face value of $1,000. The coupon rate is 9.25% paid semiannually. There are 15 years remaining between settlement and maturity on the bond. Using the Excel YIELD function and the related example in Exhibit 10.2 in Chapter 10, calculate the yield to maturity. Note: Excel requires that bond prices and face values be expressed on 100 point scale so you must divide current price and redemption value by 10.

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Expert Solution

Bond Price 953
Face Value 1000
Coupon Rate 9.25% 0.04625 semi annually
No of Years 15 46.25
Yield to Maturity ?
Years Cashflows Discounted factor @ 15%
1 46.25 0.953025 44.07742
2 46.25 0.908257 42.0069
3 46.25 0.865592 40.03365
4 46.25 0.824931 38.15308
5 46.25 0.786181 36.36085
6 46.25 0.74925 34.65282
7 46.25 0.714054 33.02501
8 46.25 0.680512 31.47368
9 46.25 0.648545 29.99521
10 46.25 0.61808 28.5862
11 46.25 0.589046 27.24337
12 46.25 0.561376 25.96363
13 46.25 0.535005 24.74399
14 46.25 0.509874 23.58165
15 46.25 0.485922 22.47391
16 46.25 0.463096 21.41821
17 46.25 0.441343 20.4121
18 46.25 0.420611 19.45325
19 46.25 0.400853 18.53944
20 46.25 0.382023 17.66856
21 46.25 0.364077 16.83858
22 46.25 0.346975 16.0476
23 46.25 0.330676 15.29377
24 46.25 0.315143 14.57535
25 46.25 0.300339 13.89068
26 46.25 0.286231 13.23817
27 46.25 0.272785 12.61631
28 46.25 0.259971 12.02366
29 46.25 0.247759 11.45886
30 1046.25 0.236121 247.0412
952.8871
9.858
The yield to maturity is approx 9.858%

jeff jeffy answered 2 years ago
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