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Homework answers / question archive / Netflix Inc has outstanding bonds with an annual 8 percent coupon
Netflix Inc has outstanding bonds with an annual 8 percent coupon. The bonds have a par value of $1,000 and a price of $900. The bonds will mature in 10 years. What is the yield to maturity on the bonds? (YIELD TO MATURITY)
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N = 10 (The Bond is for 10 Years)
PV = -900 (The present value of the bond is $870)
PMT => 8% of 1,000 = 80 ( The coupon 8% is on Face Value)
FV = 1,000 (The Face value of bond is $1,000)
CPT + I/Y = 9.599
The YTM of the bond is 9.599%
