A Japanese company has a bond outstanding that sells for 91 percent of its ¥100,000 par value. The bond has a coupon rate of 5 percent paid annually and matures in 12 years. What is the yield to maturity of this bond (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Yield to maturity
A Japanese company has a bond outstanding that sells for 91 percent of its ¥100,000 par value. The bond has a coupon rate of 5 percent paid annually and matures in 12 years. What is the yield to maturity of this bond (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Yield to maturity
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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![**Bond Yield to Maturity Calculation**
A Japanese company has a bond outstanding that sells for 91 percent of its ¥100,000 par value. The bond has a coupon rate of 5 percent paid annually and matures in 12 years.
**Problem Statement:**
What is the yield to maturity of this bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
**Input Field:**
- **Yield to Maturity:** [ ] %
Use the formula for yield to maturity (YTM) to solve this, taking into account the bond price, face value, coupon payments, and the number of years to maturity. This calculation determines the annual return expected if the bond is held until it matures.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd87d8eee-b792-430e-98e8-ed118dd425ec%2Fb2ac8a6d-32c1-4f79-b885-1008269fba1b%2Fiusi7t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Bond Yield to Maturity Calculation**
A Japanese company has a bond outstanding that sells for 91 percent of its ¥100,000 par value. The bond has a coupon rate of 5 percent paid annually and matures in 12 years.
**Problem Statement:**
What is the yield to maturity of this bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
**Input Field:**
- **Yield to Maturity:** [ ] %
Use the formula for yield to maturity (YTM) to solve this, taking into account the bond price, face value, coupon payments, and the number of years to maturity. This calculation determines the annual return expected if the bond is held until it matures.
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