Sylvan Trees has a 7 percent coupon bond on the market with ten years left to maturity. The bond makes annual payments and currently sells for $861.20. 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.

Sylvan Trees Has a 7 Percent Coupon Bond on the Market