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mariarad [96]
3 years ago
5

g The $1,000 face value bonds of Trident Corporation have coupon of 5.5 percent and pay interest semiannually. Currently, the bo

nds are quoted at 98.02 and mature in 12 years. What is the yield to maturity
Business
1 answer:
Maslowich3 years ago
6 0

Answer:

The answer is 5.73%

Explanation:

Given Coupon rate=5.5%; Years of maturity= 12years, Face value bonds= $1,000, Price=98.2

NPER= Years of maturity *2= 12*2=24

PMT= (Face value * coupon rate)/2= (1000*5.5)/2= 5500/2= 2.75

Therefore:

Rate = (NPER, PMT, -Price, Face value)= (24, 2.75, -98.2, 1000)= 2.87%

Yield to maturity= Rate *2= 2.87*2= 5.73%

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4 years ago
If you could help me
MAVERICK [17]

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Hope this helped!

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8 0
3 years ago
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