Question: The answer is not 11.70 for approximate yield to maturity The Pioneer Petroleum Corporation has a bond outstanding with an $90 annual interest payment, a

The answer is not 11.70 for approximate yield to maturity The

The answer is not 11.70 for approximate yield to maturity

The Pioneer Petroleum Corporation has a bond outstanding with an $90 annual interest payment, a market price of $880, and a maturity date in six years. Assume the par value of the bond is $1,000. Find the following: (Use the approximation formula to compute the approximate yield to maturity and use a calculator or Excel to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) 9.00% 10.23% a. Coupon rate b. Current yield c-1. Approximate yield to maturity c-2. Exact yield to maturity % 11.91%

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