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Russell Industries issued an 8% annual coupon bond that matures in 20 years.The bond has a...

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Finance

Russell Industries issued an 8% annual coupon bond that maturesin 20 years.The bond has a face value of $1,000 and a current yieldof 8.2430%. What is the bond's yield to maturity?

Please show formulas and work when solving with a financialcalculator, not excel.

Answer: 8.31%

Answer & Explanation Solved by verified expert
3.9 Ratings (435 Votes)
Information providedFace value future value 1000Time 20 yearsCoupon rate 8Coupon payment 0081000 80Current yield 82430The question    See Answer
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Transcribed Image Text

Russell Industries issued an 8% annual coupon bond that maturesin 20 years.The bond has a face value of $1,000 and a current yieldof 8.2430%. What is the bond's yield to maturity?Please show formulas and work when solving with a financialcalculator, not excel.Answer: 8.31%

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