Yield to maturity. What is the yield of each of the following bonds if interest

Question

Yield to maturity. What is the yield of each of the following bonds if interest is paid annually?
Par value. Coupon rate. Yrs to. Price Maturity

$1000. 8%. 30 $670 $1000. 10%. 30. $1100 $5000. 11%. 25. $5000 $1000. 12%. 5. $1200 Yield to maturity. What is the yield of each of the following bonds if interest is paid annually?
Par value. Coupon rate. Yrs to. Price Maturity

$1000. 8%. 30 $670 $1000. 10%. 30. $1100 $5000. 11%. 25. $5000 $1000. 12%. 5. $1200 Yield to maturity. What is the yield of each of the following bonds if interest is paid annually?
Par value. Coupon rate. Yrs to. Price Maturity

$1000. 8%. 30 $670 $1000. 10%. 30. $1100 $5000. 11%. 25. $5000 $1000. 12%. 5. $1200
Par value. Coupon rate. Yrs to. Price Maturity

$1000. 8%. 30 $670 $1000. 10%. 30. $1100 $5000. 11%. 25. $5000 $1000. 12%. 5. $1200

Explanation / Answer

Yield to maturity :

1. YTM = Coupon/ Interest payment + (Face value - Price) / number of years/ (face value + price)/2

= $ 1000 * 8% + ($ 1000 - $ 670)/30 / ($ 1000+ $ 670)/2

= $ 80 + $ 11 / $ 835 = 10.90%

2. YTM = $ 1000* 10% + ( $ 1000 - $ 1100 ) / 30 / ( $ 1000 + $ 1100 )/2

= $ 100 - $ 3.33/ $ 1050 = 9.21%

3. YTM = $ 5000* 11% + ( $ 5000 - $ 5000)/25/ ( $ 5000+ $ 5000)/2

= $ 550+ $ 0 / $ 5000 =  11 %

4. YTM = $ 1000 * 12% + ( $ 1000 -$ 1200 ) /5 / ( $ 1000+ $ 1200 )/2

= $ 120 -$ 40 / $ 1100 =  7.27%

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