Palmer Products has outstanding bonds with an annual 8 percent coupon. The bonds have a par value of $1,000 and a price of $865. The bonds will mature in 11 years. What is the yield to maturity on the bonds?
- 1 decade agoFavorite Answer
if you have a finacial caculator, input the data as below
80 for PMT (interest received)
1000 for FV (face value as finanl value)
-865 for PV (price you "pay" now so there has to be a minus be4 the number)
11 for N (years to maturity)
then compute for "i" then you'll get the answer "10.07%"