What is the yield-to-maturity on thesebonds

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Reference no: EM132027496

Theo has been assigned the task of determining the cost of capital for hisdivision of the Frm. His Frst step is to determine the cost of debt. The Frm has$1,000 par value bonds outstanding that have an annual coupon rate of 8.00% andmake semiannual payments.

These bonds have twenty-three years remaining tomaturity and currently sell for $1,133.42.

What is the yield-to-maturity on thesebonds? Use a Fnancial calculator to determine your answer.

Reference no: EM132027496

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