IBM issued a 30-year $1,000 par value bond with 8% coupon rate 10 years ago. The coupons are paid semiannually. The bond is currently selling at 96% of its par value. What is the YTM on IBM's debt (cost of debt)?
 

2) IBM issued a 30-year $1,000 par value bond with 8% coupon rate 15 years ago. The coupons are paid semiannually. The bond is currently selling at 104% of its par value. What is the YTM on IBM's debt (cost of debt)?

Answer rating: 100% (QA)

Answer To calculate the yield to maturity YTM for each bond we can use the foll... View the full answer