Answered: PP Inc has outstanding bonds with an…

PP Inc has outstanding bonds with an annual 8% coupon. The bonds have a par value of$1000 and a price of $865. The bond will mature in 11 years. What is the yeild to maturity on the bonds?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 16P

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PP Inc has outstanding bonds with an annual 8% coupon. The bonds have a par value of$1000 and a price of $865. The bond will mature in 11 years. What is the yeild to maturity on the bonds?

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