ERIC asked in 商業與財經投資 · 1 decade ago


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 Answer

  • 1 decade ago
    Favorite 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%"

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