Time Value of Money

b. YTM = 7.2789%. On the calculator, enter PV = (-)1050, FV = 1000, n = 10, PMT = 80, compute i. 7. When the bond is selling at par, its yield to maturity equals its coupon rate. This firm’s bonds are selling at a yield to maturity of 9.25%. So the coupon rate on the new bonds must be 9.25% if … ................
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