harrimon industries bonds have 6 years left to maturity. interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 10%. what is the yield to maturity at a current market price of $813? round your answer to two decimal places

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21-10-2022
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harrimon industries bonds have 6 years left to maturity. interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 10%. what is the yield to maturity at a current market price of $813? round your answer to two decimal places

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kumarravichandra kumarravichandra · Answer 1 · 2022-10-26T14:07:43-04:00

14.78% is the yield to maturity at a current market price of $813 for the given question

The internal rate of return on an investment is the same as the yield to maturity. YTM is the interest rate at which the initial investment and the present value of future cash flows will be equal:

computed as:

N = 6

Fv = $1,000

Pmt = $1,000 × 10% = $100

Pv = - $813

P/yr = 1

I (YTM) = ?

The yield to maturity (YTM), calculated by entering the aforementioned figures into a financial calculator, is 1,478.22%, or 14.78%.

For the same structure for YTM visit here :

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