Stone Sour Corp. issued 30-year bonds 6 years ago at a coupon rate of 7.90 perce
ID: 2650612 • Letter: S
Question
Stone Sour Corp. issued 30-year bonds 6 years ago at a coupon rate of 7.90 percent. The bonds make semiannual payments. If these bonds currently sell for 109 percent of par value, what is the YTM? (Round your answer to 2 decimal places. (e.g., 32.16))
An investment offers a 14 percent total return over the coming year. Fred Bernanke thinks the total real return on this investment will be only 10 percent.
What does Fred believe the inflation rate will be over the next year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Stone Sour Corp. issued 30-year bonds 6 years ago at a coupon rate of 7.90 percent. The bonds make semiannual payments. If these bonds currently sell for 109 percent of par value, what is the YTM? (Round your answer to 2 decimal places. (e.g., 32.16))
Explanation / Answer
PMT = 79/2 = 39.5
PV = -1090
FV = 1000
I/Y = ?I/Y = 3.04%