Consider a 12%, 15 year bond that pays interest semiannually, and its current price is $675. What

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Consider a 12%, 15 year bond that pays interest semiannually, and its current price is $675. What is the promised yield to maturity?

I can see the answer on the document, I just don't understand where the 60 is coming from.

675 = 60( 1 - [(1/1+i)^30] / i) + 1000 / (1 + i)^30

i = 0.09227

Annualized = 0.092227x 2 = 0.1845

I just don't understand the "60"

Posted Date: May 10, 2024 04:12 AM

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Consider a 12%, 15 year bond that pays interest semiannually, and its current price is $675. What

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Okay lets break this down stepbystep The key information given Coupon rate 12 per year Maturity 15 y... View the full answer

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