Bellamee, Inc. has semiannual bonds outstanding with five years to maturity, and the bonds are priced at $920.87. If the bonds have a coupon rate of 7 percent, then what is the YTM for the bonds? Round your final percentage answer to two decimal places.

Question

Quizplus · Accepted Answer

The YTM is calculated using the bond price, coupon payments, and time to maturity. Given the bond price of $920.87, a coupon rate of 7% (semiannual payments of $35), and 10 periods (5 years), the YTM is approximately 9.0% when calculated.