Hacker Software has 12.0 percent coupon bonds on the market with 16 years to mat

Question

Hacker Software has 12.0 percent coupon bonds on the market with 16 years to maturity. The bonds make semiannual payments and currently sell for 108.8 percent of par.

What is the current yield on the bonds? (Round your answer to 2 decimal places. (e.g., 32.16))

What is the YTM? (Round your answer to 2 decimal places. (e.g., 32.16))

What is the effective annual yield? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Hacker Software has 12.0 percent coupon bonds on the market with 16 years to maturity. The bonds make semiannual payments and currently sell for 108.8 percent of par.

Explanation / Answer

Let the FV=1000 Coupon=0.12*1000/2 60 Current Price=1.1088*1000 1108.8 Current Yield=(60/1108.8)*100 5.41 FVA(A=60,N=32,I=?)+PV(1000,N=32,I=?)=1108.8 A1 -1108.8 A2 60 A3 60 A4 60 A5 60 A6 60 A7 60 A8 60 A9 60 A10 60 A11 60 A12 60 A13 60 A14 60 A15 60 A16 60 A17 60 A18 60 A19 60 A20 60 A21 60 A22 60 A23 60 A24 60 A25 60 A26 60 A27 60 A28 60 A29 60 A30 60 A31 60 A32 60 A33 60 A34 1000 Yield=IRR(A1:A34,0.01) 5% Effective Annual Yield=((1.05^2)-1)*100 10.25

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.