The bonds make semi annual payments if these bonds


Cavu Air Inc., issued 15 Year bonds 2 years ago at a coupon rate of 7.30% percent. The bonds make semi annual payments. If these bonds currently sell for 103 percent of par value, what is the YTM?

Settlement date  1/1/2000

Maturity date 1/1/2013

Annual coupon rate 7.30%

Coupons per year 2

Face value (% of par)  100

Bond price (% of par) 103

Solution Preview :

Prepared by a verified Expert
Finance Basics: The bonds make semi annual payments if these bonds
Reference No:- TGS02742185

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)