May Industries has a bond outstanding that sells for $937. The bond has a coupon
ID: 2737471 • Letter: M
Question
May Industries has a bond outstanding that sells for $937. The bond has a coupon rate of 5.30 percent and 24 years until maturity. What is the yield to maturity of the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
May Industries has a bond outstanding that sells for $937. The bond has a coupon rate of 5.30 percent and 24 years until maturity. What is the yield to maturity of the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Explanation / Answer
1 Face value (FV) $ 1,000 2 Coupon rate 5.30% 3 Number of compounding periods per year 1 1*2/3 Interest per period (PMT) $ 53.00 Bond price (PV) $ (937.00) 4 Number of years to maturity 24 5 = 4*3 Number of compounding periods till maturity (NPER) 24 Bond yield to maturity RATE(NPER,PMT,PV,FV) Bond yield to maturity 5.79%