What is the YTM of the bond given the information below. The bond makes semiannual interest...

What is the YTM of the bond given the information below. The bond makes semiannual interest payments.

(Do not round intermediate calculations, round answer to two decimals, i.e. 32.16)

Coupon Rate:7.4%

Maturity (years):18

Current Price: $1,163.80

Par value: $1,000.00

YTM: ? %

Solutions

Expert Solution

YTM CAN BE CALCULATED THROUGH IRR FORMULA

SINCE, COUPON PAYMENTS ARE SEMI-ANNUALLY

THEREFORE, WE HAVE TO MULTIPLY IRR WITH 2 FOR GETTING ANNUALLY YTM

jeff jeffy answered 1 year ago

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