Find the Yield to Maturity for a bond that is currently selling at $1,090 and has the

following characteristics: (a) NPER—30 and (b) Coupon Payments--$70

Using Excel's RATE() function:

NPER...30 (This is the number of periods to maturity.)

PMT.....($70.00) (This is the coupon interest payment.)

PV.....$1,090.00 (This is the current selling price of the bond.)

FV..... ($1,000.00) (This is the par or face value of the bond .)

TYPE0. (Input 0 or 1. 0 or blank means ordinary annuity. 1 means annuity due.)

GUESS...6.00% (Input any interest here if cell C16 is returning error message.)

RATE..... 6.32% (Type formula here: = PV(rate, nipper, pmt, fv, type)