Please show how this is solved in excel, thank you so much!!! ? A1 X v/ fx 8.06

Question

Please show how this is solved in excel, thank you so much!!!

? A1 X v/ fx 8.06 Bond Yields A Japanese company has a bond outstanding that sells for 106 percent of its ¥100,000 par value. The b 8.06 Bond Yields A Japanese company has a bond outstanding that sells for 106 percent of its ¥100,000 par value. The bond has a coupon 1 rate of 2.8 percent paid annually and matures in 21 years. What is the yield to maturity of this bond? 3 Face Value Maturity Coupon Rate Compounding Frequency 6 YTM Bond Price

Explanation / Answer

Face Value = 100,000, Maturity = 21, Coupon rate = 2.8%, Frequency = 1 (annually)

Bond price = 1.06*100,000

YTM

= =RATE(21,2.8%*100000,-106000,100000,0) (paste in Excel)

= 2.432%

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