Calgary Corp. issued 20-year bonds 3 years ago. The bonds havea face value of $1,000 and their coupon rate is 7.1% with semi-annual payments. The bonds currently sell for 115% of par value.What is the YTM? Provide a percentage. (Round your finalanswer to two decimals)..

Answers: PV = C * (1 - (1 + r)^-n) / r + M / (1 + r)^n Where:PV = Present Value = Market Price of…

Answered: Calgary Corp. issued 20-year bonds 3…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Calgary Corp. issued 20-year bonds 3 years ago. The bonds have a face value of $1,000 and their coupon rate is 7.1% with semi- annual payments. The bonds currently sell for 115% of par value. What is the YTM? Provide a percentage. (Round your final answer to two decimals)..