Financing for new initiative it is contemplating

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Spirit Ltd. is seeking financing for a new initiative it is contemplating.  It intends to issue a new series of bonds on January 1, 2011.  They are expected to mature in 20 years, on December 31, 2030, and will have a coupon rate of 10%.  They will issue with a par value of $1,000, and coupon payments will be made semi-annually, on June 30 and December 31. 

What is the bond’s yield to maturity (YTM) on June 30, 2018, if the bond sold for $963 on that date?

Reference no: EM131892030

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