Stone Sour Corp. issued 20-year bonds two years ago at a coupon rate of 7.1 percent....

Stone Sour Corp. issued 20-year bonds two years ago at a coupon rate of 7.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?

Settlement Date= 1/1/2000

Maturity Date= 1/1/2018

Annual Coupon Rate =7.10%

Coupon per Year=2

Face Value(%of Par)=100

Bond Price (%of Par)=105

Calculate Yield to Maturity in Excel using above Information

Solutions

Expert Solution

Use the following inputs on the spreadsheet to calculate the YTM of the bond:

The results obtained are as follows:

jeff jeffy answered 1 year ago

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