Homework answers / question archive / Eastern Corporation has $1,000 par value bonds with 4 years to maturity

Eastern Corporation has $1,000 par value bonds with 4 years to maturity

Finance

Share With

Eastern Corporation has $1,000 par value bonds with 4 years to maturity. The bonds pay an 8% coupon rate with semi-annual coupon interest payments. The bond's closing price is quoted at 102.75. Suppose you purchase the bond for the closing price. What is the bond's yield to maturity?