A 10 year $1000 face value bond has an 8.5% annual coupon. the bond has a current yield of 8%. What is the bonds yield to maturity?
I have tried to do this on my financial calculator but I don't really understand how to do it with out the present value. I did FV=1000, PMT=85, I/Y= 8%, n=10 and solved for the PV, but I am stuck on how to get the yield to maturity with that. I'm not sure what I am missing or doing wrong. I do know that the correct answer is 7.59%
I have tried to do this on my financial calculator but I don't really understand how to do it with out the present value. I did FV=1000, PMT=85, I/Y= 8%, n=10 and solved for the PV, but I am stuck on how to get the yield to maturity with that. I'm not sure what I am missing or doing wrong. I do know that the correct answer is 7.59%
