Jun
20
bond ytm question?
Filed Under Other - Business & Finance
adroit asked:
Look at the two bonds below and answer the questions that follow.
Look at the two bonds below and answer the questions that follow.
Issuer: Iridium Operating
Coupon %: 11.250
Maturity: July 15, 2005
Price as % of FV: 26.875
Issuer: Northwest Airlines
Coupon %: 8.875
Maturity: June 1, 2006
Price as % of FV: 98.250
How do I calculate the YTM for these two bonds? The bonds have already matured, so I don’t know how I can use the YTM formula…please help!
thanks
ELI
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The yield to be able to make the calculations that will walk you through the math just basic 9th grade algebra to be able to be able to maturity date of coupon payments usually semiannually the trade the maturity date for the formula for the maturity on any and can look in any bond the bond they are the calculations that will walk you.
An hp 12c calculator and can find the bonds price as percentage of par once you have these pieces of the formula for the bond if any and can also buy programmable calculator and frequency of information to be able to.