(Yield to maturity) Smith Industries has a 8.0% bond maturing in 12 years. What is the yield to maturity if the current market price of the bond is:
a. $1,090? B. $1,000? C. $890?
S=K*(1+P/100)N where: S - sum bond with interest, K - sum bond (capital) P - interest rate N - number of years of calculation percent. a) K= $1,090 , P=8% , N=12 Answer: S= $2 744,81 b) K= $ 1,000 , P=8% , N=12 Answer: S= $ 2 518,17 c) K= $ $890 , P=8% , N=12 Answer: S= $ 2 241,17