A Corporate bond has an 8% coupon and pays interest annually.The face value is $1,000 and the current market price is $1,020.50.The bond matures in 20 years.What is the yield to maturity?

Question

Quizplus · Accepted Answer

This cannot be solved directly,so it's easiest to just use the calculator method to get an answer.You can then use the calculator answer as the rate in the formula just to verify that your answer is correct.Answer is 7.79%

A Corporate Bond Has an 8% Coupon and Pays Interest