What is the yield to maturity of a nineminusyear bond that pays a coupon rate of 20% per year, has a $1,000 par value, and is currently priced at $1,407? assume annual coupon payments.

12.28%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.  

Given that,  

Present value = $1,407

Future value or Face value = $1,000  

PMT = $1,000 × 20% = $200

NPER = 9 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the answer would be 12.28%

answer$22,000 ;

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