Amazon Inc. has semiannual coupon bonds with 5% coupon rate and 20 years remaining to maturity....

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Amazon Inc. has semiannual coupon bonds with 5% coupon rate and 20 years remaining to maturity. The bonds are selling for 78% of par value. What is the (annual) yield of maturity of the bonds? Note that the price is % of par value. For example, 120% suggests $1,200 price for $1,000 par value (or $120 price for $100 par value) Yield to maturity = % Amazon Inc. has semiannual coupon bonds with 5% coupon rate and 20 years remaining to maturity. The bonds are selling for 78% of par value. What is the (annual) yield of maturity of the bonds? Note that the price is % of par value. For example, 120% suggests $1,200 price for $1,000 par value (or $120 price for $100 par value) Yield to maturity = %

Answer rating: 100% (QA)

To calculate the yield to maturity YTM of the bond we can use the formula for YTM The YTM is the ann... View the full answer