I only need the answer to c-1 approx YTM. McGrawHill Connect program is saying i

Question

I only need the answer to c-1 approx YTM. McGrawHill Connect program is saying it's not 4.45%, but that's what I keep calculating.

Preston Corporation has a bond outstanding with an annual interest payment of $80, a market price of $1,290, and a maturity date in 10 years. Assume the par value of the bond is $1,000. Find the following: (Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) a. Coupon rate b. Current yield c-1. Approximate yield to maturity c-2. Exact yield to maturity 8.001 % 6.201 % 4.453% 4.361%

Explanation / Answer

Answer) Hi I am also getting the same answer)

I have used the following formulae

Approx YTM = Coupon + [(Face value - Price of bond)/2 ] / (Face value + Price / 2) = 51 / 1145 = 4.454%

This should be the right answer.

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