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A japanese company has a bond outstanding that sells for 91.53 percent of its ¥100,000 par value. the bond has a coupon rate of 3.4 percent paid annually and matures in 16 years. what is the yield to maturity of this bond?

Respuesta :

Answer:

4.13%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  Kindly find the attachment below

The NPER represents the time period.  

Given that,  

Present value = ¥100,000 × 91.53% = ¥91,530

Future value or Face value = ¥100,000

PMT = ¥100,000 × 3.4% = ¥3,400

NPER = 16 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative

After solving this, the yield to maturity is 4.13%

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