Company XYZ has a bond issue outstanding that pays an 7.25% coupon semiannually with a maturity of 18 years. The bonds have a par value of $1,000 and a market price of $957.20. What is the yield to maturity?

Company XYZ has a bond issue outstanding that pays an 7.25% coupon semiannually with a maturity of 18 years. The bonds have a par value of $1,000 and a market price of $957.20. What is the yield to maturity?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8P

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Question

Company XYZ has a bond issue outstanding that pays an 7.25% coupon semiannually
with a maturity of 18 years. The bonds have a par value of $1,000 and a market price
of $957.20. What is the yield to maturity?

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