Problem 10-8 Atlantis Fisheries issues zero coupon bonds on the market at a pric
ID: 2650092 • Letter: P
Question
Problem 10-8
Atlantis Fisheries issues zero coupon bonds on the market at a price of $415 per bond. Each bond has a face value of $1,000 payable at maturity in 17 years. What is the yield to maturity for these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Atlantis Fisheries issues zero coupon bonds on the market at a price of $415 per bond. Each bond has a face value of $1,000 payable at maturity in 17 years. What is the yield to maturity for these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Explanation / Answer
Statement showing calculation of Present Value Particulars Time PVF@5.3% Amount PV Cash Inflows (Bond price) 17.00 0.4156 1,000.00 415.64 Bond price Today 415.64 YTM is 5.3% Time PVF 1.00 0.9497 2.00 0.9019 3.00 0.8565 4.00 0.8134 5.00 0.7724 6.00 0.7336 7.00 0.6966 8.00 0.6616 9.00 0.6283 10.00 0.5966 11.00 0.5666 12.00 0.5381 13.00 0.5110 14.00 0.4853 15.00 0.4609 16.00 0.4377 17.00 0.4156
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.