For this question "Macro Corporation issued 50-year $80million of face value bonds that have a coupon rate of 6% paid semi-annually. The bonds were issued at 97. Given this information, calculate the yield to maturity."

Can someone please show me step-by-step how to find the YTM (yield to maturity) algebraically??

The formula I will be using for this question is attached in an image with this question. Please solve the question based on that formula because that's what I am supposed to be doing. The r in this case would be the YTM I'm looking for.

 

Transcribed Image Text:

PV = r 1 1 + FV (1+r) (1+r) PV = r 1 1 + FV (1+r) (1+r)

Answer rating: 100% (QA)

The formula for calculating the yield to maturity YTM of a bond is as follows Price ... View the full answer