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A bond price is $1,135.90. The maturity is 10 years. The coupon rate is 10%. Payments...

A bond price is $1,135.90. The maturity is 10 years. The coupon rate is 10%. Payments are semi-annual. Face value is $1,000. Solve for the YTM. Input your answer as whole percentage with two decimal places (x.xx), so 9.5% is input as 9.50.  

Hint: first solve for the RATE by adjusting for semiannual again, then multiply this result by 2 to bring it back to annual. The PMT and FV have the same sign since they are inflows to the investor, while the PV has the opposite sign as an outflow from the investor when they buy the bond.

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2 IMAGES : FIRST ONE WITH EXCEL, SECOND ONE WITH BA II PLUS

jeff jeffy answered 1 year ago
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