Find the Yield to Maturity for a bond that is currently selling at $1,090 and has the following characteristics: (a) NPER30 and (b) Coupon Payments$70Using Excel's RATE() function:
NPER...30(This is the number of periods to maturity.)
PMT.....($70.00)(This is the coupon interest payment.)
PV.....$1,090.00 (This is the current selling price of the bond.)
FV..... ($1,000.00)(This is the par or face value of the bond .)
TYPE0.(Input 0 or 1. 0 or blank means ordinary annuity. 1 means annuity due.)
GUESS...6.00%(Input any interest here if cell C16 is returning error message.)
RATE..... 6.32%(Type formula here: = PV(rate, nipper, pmt, fv, type)