I already ask this but I whant know how you do the calculation, please could you show me all the step and the calculation. Carrie's clothes, has a five year bond outstanding that pay $60 annually. The face value of each bond is $1000, and the bond sells for $890. What is the yield to maturity?

I already ask this but I whant know how you do the calculation, please could you show me all the step and the calculation. Carrie's clothes, has a five year bond outstanding that pay $60 annually. The face value of each bond is $1000, and the bond sells for $890. What is the yield to maturity?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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I already ask this but I whant know how you do the calculation, please could you show me all the step and the calculation.

Carrie's clothes, has a five year bond outstanding that pay $60 annually. The face value of each bond is $1000, and the bond sells for $890.

What is the yield to maturity?

Definition Definition Calculates the present value of a bond's expected future periodic coupon payments. Bond valuation determines the theoretical fair value of a particular bond and helps investors estimate what rate of return they could expect. The bond's theoretical fair value is computed by discounting the future cash flows or coupon payments by an applicable discount rate.

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