Current ytm of the bonds


Problem:

You are analyzing the cost of debt for a firm. You know that the firm's 14-year maturity, 9.00 percent coupon bonds are selling at a price of $1,101.14. The bonds pay interest semiannually. These bonds are the only debt outstanding for the firm.

Required:

Question: What is the current YTM of the bonds?

Note: Provide support for your underlying principle.

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Accounting Basics: Current ytm of the bonds
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