The bonds are currently selling at 85 percent of par value


Fifteen years ago, Namson and Co. issued a 25-year coupon bonds. The yield to maturity at the time of issuance was 10% and the bonds sold at 120 percent of par value. The bonds are currently selling at 85 percent of par value. What is the current yield to maturity for these bonds.

Assume that the coupon is paid annually.

Solution Preview :

Prepared by a verified Expert
Risk Management: The bonds are currently selling at 85 percent of par value
Reference No:- TGS02269362

Now Priced at $10 (50% Discount)

Recommended (90%)

Rated (4.3/5)