The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 30 years. The bond certificate indicates that the stated coupon rate for this bond is 5% and that the coupon payments are to be made semi-annually. The bond is currently sold at $800. What is the yield to maturity (YTM quoted as APR with semiannual compounding) of this bond? Answer in % and include 4 decimal places. Do not include the '%' in your answer. E.g., 10.1234 would be entered if the answer was 10.1234%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 5P
Question
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The Sisyphean Company has a bond outstanding with a face value of $1,000 that
reaches maturity in 30 years. The bond certificate indicates that the stated coupon
rate for this bond is 5% and that the coupon payments are to be made semi-annually.
The bond is currently sold at $800.
What is the yield to maturity (YTM quoted as APR with semiannual compounding)
of this bond?
Answer in % and include 4 decimal places. Do not include the '%' in your answer.
E.g., 10.1234 would be entered if the answer was 10.1234%.
Transcribed Image Text:The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 30 years. The bond certificate indicates that the stated coupon rate for this bond is 5% and that the coupon payments are to be made semi-annually. The bond is currently sold at $800. What is the yield to maturity (YTM quoted as APR with semiannual compounding) of this bond? Answer in % and include 4 decimal places. Do not include the '%' in your answer. E.g., 10.1234 would be entered if the answer was 10.1234%.
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