Based on the coupon rate on this corporate bond and the face value, the yield on the bond is 15.2%.
What is the yield on this bond?
The number of periods is missing so we shall assume a maturity period of one year.
The rate can be found using an Excel worksheet or a financial calculator.
Using an Excel worksheet, the relevant function is the RATE function and the following details will be needed:
Nper = 1 year
Pmt = 6% x 5,000
= $300
Pv = (5,000 * 0.92)
= $4,600
Pv = -4600 because it should be negative.
Fv = $5,000
The yield you will get is 15.2% as shown in the attached image.
Find out more on bond yields at https://brainly.com/question/7967102.
