A Japanese company has a bond that sells for 97.117 percent of its ¥100,000 par value. The bond has a coupon rate of 5.6 percent paid annually and matures in 16 years. What is the yield to maturity of this bond?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 4MC
Question
A Japanese company has a bond that sells for 97.117 percent of its ¥100,000 par value. The bond has a coupon rate of 5.6 percent paid annually and matures in 16 years. What is the yield to maturity of this bond?
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