How do I calculate finding I/Y manually, I know how to BAII Plus
it?
•Debt:
•1 million bonds outstanding
•$1000.00 face value
•Current price = $1100.00
•Coupon rate = 9%, semiannual coupons
•15 years to maturity
Tax Rate is 40%
I know the set up and answer is
-1100 = 45(PVIFA, I/Y, 30) + 1000(PVIF, I/Y, 30)
I/Y = 3.9268 x 2 = 7.85%