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A 100-year corporate bond has a coupon rate of 9% with semi-annual payments. If the current...

  1. A 100-year corporate bond has a coupon rate of 9% with semi-annual payments. If the current value of the bond in the marketplace is $400, then what is the Yield-to-Maturity (YTM)?

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Expert Solution

Calculations-

Here,
Fv is the Future value of the bond
rate is the periodic interest rate
nper is no. of periods
pmt is the periodic coupon payments
Pv is the current rate of bond

type = 0 if the amount is paid at the end of the year ,1 if it is paid at the beginning.

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

jeff jeffy answered 1 year ago
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