Dyl Inc.'s bonds currently sell for $1,040 and have a par value of $1,000.They pay a $65 annual coupon and have a 15-year maturity,but they can be called in 5 years at $1,100.What is their yield to maturity (YTM)?

Question

Quizplus · Accepted Answer

The yield to maturity (YTM) is calculated using the bond's current price, par value, coupon payment, and time to maturity. Given the bond's current price of $1,040, a par value of $1,000, a $65 annual coupon, and a 15-year maturity, the YTM is approximately 6.09%.

Dyl Inc'S Bonds Currently Sell for $1,040 and Have a Par