Top Posters
Since Sunday
R
11
g
10
a
10
d
10
y
10
n
10
p
9
d
9
M
9
S
9
S
9
s
9
Home Q & A Board Other Fields Homework Help Business Management
New Topic  
pompa pompa
wrote...
Go to Answer
Posts: 997
Rep: 0 0
6 years ago
Tangshan Industries has issued a bond which has a $1,000 par value and a 15 percent annual coupon interest rate. The bond will mature in ten years and currently sells for $1,250. Using this information, the yield to maturity on the Tangshan Industries bond is ________.
A) 10.79 percent
B) 11.39 percent
C) 12.19 percent
D) 13.29 percent
Textbook 
Principles of Managerial Finance

Principles of Managerial Finance


Edition: 14th
Authors:
Read 373 times
3 Replies
Replies
Answer verified by a subject expert
UlainUlain
wrote...
#1
Top Poster
Posts: 1011
Rep: 37 0
6 years ago Edited: 3 months ago, bio_man
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
A

Approx. Yield to Maturity Formula
= 150 + (1250 - 1000 /10) / (1250 + 1000/2)

= 10.79%
1

Related Topics

Anonymous
wrote...
#2
3 months ago
Help! The answer is missing an explanation...
Anonymous
wrote...
#3
3 months ago
Added the solution above!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  305 People Browsing
 264 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Live Chat
Related Images
  
 217
  
 108
  
 70
Your Opinion
What's your favorite funny biology word?
Votes: 87
Previous poll results: Which country would you like to visit for its food?