Problem:
Using a Spreadsheet to Calculate Yield to Maturity. What is the yield to maturity on the following bonds; all have a maturity of 10 years, a face value of $1,000, and a coupon rate of 9 percent (paid semi-annually). The bonds’ current market values are $945.50, $987.50, $1,090.00, and $1,225.875, respectively.
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Market Value
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Total Payments
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Periodic Coupon Payment
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Face Value =>
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The Yield to Maturity Will Be
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945.50
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10x2 = 20
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1,000(.09)/2 = 45
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$1,000
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9.87%
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987.50
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20
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45
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1,000
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9.19
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1,090.00
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20
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45
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1,000
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7.69
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1,225.875
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20
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45
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1,000
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5.97
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