Use the information for the question(s) below.
-The Sisyphean Company has a bond outstanding with a face value of $5000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $4541.53, then the YTM for this bond is closest to ________.
A) 7.9%
B) 11.9%
C) 13.8%
D) 9.9%

Question

Use the information for the question(s) below. 
-The Sisyphean Company has a bond outstanding with a face value of $5000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $4541.53, then the YTM for this bond is closest to ________.
A) 7.9% 
B) 11.9% 
C) 13.8% 
D) 9.9%

Quizplus · Accepted Answer

D) FV = $5000
PMT = $205 ($410/2)
N = 16 (8 × 2)
PV = -$4541.53
Compute I = 4.9426 × 2 = 9.8852%.

Use the Information for the Question(s) Below