Problem regarding yield to maturity


Problem 1:

(Yield to maturity) Coca-Cola has a zero-coupon bond that will pay $1,000 at maturity in five years. Today the bond is selling for $790.09. What is the YTM?

Problem 2:

(Yield to maturity) J.C. Penney has a zero-coupon bond that will pay $1,000 at maturity in 25 years. Today the bond is selling for $98.24. What is its YTM?

Problem 3:

(Yield to call) Samsung has a bond that cannot be called today but can be called in four years at a call price of $1,080. The bond has a remaining maturity of 16 years, has a coupon rate of 14%, and is currently selling for $1,107.67. What is the bond's YTC?

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Finance Basics: Problem regarding yield to maturity
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