Your firm has just issued a 15-year $1,000.00 par value,10% annual coupon bond for a net price of $964.00.What is the yield to maturity? Use a financial calculator to determine your answer.
A)10.60%
B)10.49%
C)10.44%
D)10.16%

Question

Quizplus · Accepted Answer

Using a financial calculator, inputting N=15, PV=-964.00, PMT=100.00, and FV=1000.00, and solving for I/Y gives a result of 10.49%. Therefore, the yield to maturity is 10.49%. Choice B is the correct answer.

Your Firm Has Just Issued a 15-Year $1,000