Your firm has just issued a 10-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.

Question

Quizplus · Accepted Answer

The yield to maturity is 10.60%. This can be calculated using a financial calculator. The inputs are:* N = 10 (number of years to maturity)* I = 10 (annual coupon rate)* PV = -964 (present value of the bond)* FV = 1000 (face value of the bond)The calculator will then output the yield to maturity, which is 10.60%.

Your Firm Has Just Issued a 10-Year $1,000