QVC has a 12.7 percent coupon bonds on the market with 12 years left to maturity. The bonds make annual payments and have a par value of $1,000. If the bonds currently sell for $1,153.60, what is the YTM?
1. What are you solving for?
2. What are your known variables? ( Be sure to consider whether these variables should be stated as annual values or whether they should be adustd)
3. What methodology are you using to solve (Excel, Caculator or Formula)? Identify the formula and show relevant work to reach your solution.