Here's the question.
An 9% semiannual coupon bond matures in 14 years. The bond has a face value of $1,000 and a current yield of 7.73%. What are the bond's price and YTM? Round your answers to two decimal places.
In my calculator to find price I put:
n=28 i%=7.73 pv=solve pmt=90 fv=1000 p/y=1 c/y=1 pmt:END
PV = $1143.87 < this is right.
So obviously I know how to get the first part... but how do I find the Yield to Maturity? I thought it would just be 7.73 but that's not right. Can anyone help?
An 9% semiannual coupon bond matures in 14 years. The bond has a face value of $1,000 and a current yield of 7.73%. What are the bond's price and YTM? Round your answers to two decimal places.
In my calculator to find price I put:
n=28 i%=7.73 pv=solve pmt=90 fv=1000 p/y=1 c/y=1 pmt:END
PV = $1143.87 < this is right.
So obviously I know how to get the first part... but how do I find the Yield to Maturity? I thought it would just be 7.73 but that's not right. Can anyone help?