4. Microsoft, Incorporated bond has a coupon rate of 8.5%, matures in 12 years, and sells for $835.60 (coupons are paid on a semi-annual basis). What is the YTM for this Microsoft, Inc. Corporate Bond?

4. Microsoft, Incorporated bond has a coupon rate of 8.5%, matures in 12 years, and sells for $835.60 (coupons are paid on a semi-annual basis). What is the YTM for this Microsoft, Inc. Corporate Bond?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

4. Microsoft, Incorporated bond has a coupon rate of 8.5%, matures in 12 years, and sells for $835.60
(coupons are paid on a semi-annual basis). What is the YTM for this Microsoft, Inc. Corporate Bond?

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