The Petit Chef Co. has 11 percent coupon bonds on the market with nine years left to maturity. The bonds make annual payments and have a par value of $1,000. If the bonds currently sell for $1,139.59, what is the YTM

YTM= 8.7%

Explanation:

Giving the following information:

Year to maturity= 9 years

Coupon= 0.11*1,000= $110

Par value= $1,000

Selling price= $1,139.59

To calculate the yield to maturity, we need to use a financial calculator:

Function= CMPD

Set= End

n= 9

I= SOLVE = 8.7%

PV= 1,139.59

PMT= -110

FV= -1,000

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order:

answer; automated fingerprint;