A Japanese company has a bond outstanding that sells for 96.318 percent ¥100,000 par value. The bond has a coupon rate of 3.4 percent paid annually and matures in 16 years. What is the yield to maturity of this bond? Input area: 5 Settlement date 7 Maturity date 8 Annual coupon rate 9 Coupons per year 10 Redemption value (% of par) 11 Bond price (% of par) 12 1/1/2020 1/1/2036 3.40% 1 100 96.318 13 (Use cells A6 to B11 from the given information to complete this question. You must use the built- 14 answer this question. Leave the "Basis" input blank in the function.) 15 16 Output area: 17 18 Yield to maturity 19

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
icon
Related questions
Question
need formula in excel
A Japanese company has a bond outstanding that sells for 96.318 percent of its
¥100,000 par value. The bond has a coupon rate of 3.4 percent paid annually
and matures in 16 years. What is the yield to maturity of this bond?
3
4 Input area:
5
6 Settlement date
7
Maturity date
8
Annual coupon rate
9 Coupons per year
10 Redemption value (% of par)
1/1/2020
1/1/2036
3.40%
1
100
96.318
O
11 Bond price (% of par)
12
13 (Use cells A6 to B11 from the given information to complete this question. You must use the built-in Excel funct
14 answer this question. Leave the "Basis" input blank in the function.)
15
16 Output area:
17
18 Yield to maturity
19
20
Transcribed Image Text:A Japanese company has a bond outstanding that sells for 96.318 percent of its ¥100,000 par value. The bond has a coupon rate of 3.4 percent paid annually and matures in 16 years. What is the yield to maturity of this bond? 3 4 Input area: 5 6 Settlement date 7 Maturity date 8 Annual coupon rate 9 Coupons per year 10 Redemption value (% of par) 1/1/2020 1/1/2036 3.40% 1 100 96.318 O 11 Bond price (% of par) 12 13 (Use cells A6 to B11 from the given information to complete this question. You must use the built-in Excel funct 14 answer this question. Leave the "Basis" input blank in the function.) 15 16 Output area: 17 18 Yield to maturity 19 20
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Bond Valuation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education