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Toltuck Co (Mar/June 2017)

This topic has 1 reply, 2 voices, and was last updated 3 months ago by John Moffat.

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June 5, 2023 at 3:54 pm #686064
nurazman
Participant
- Topics: 32
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In calculating yield to maturity using IRR, why the redemption value we dont take $110 ($8 coupon + $100 par +2% premium) and take $102 instead ?
June 5, 2023 at 5:16 pm #686077
John Moffat
Keymaster
- Topics: 56
- Replies: 53169
The answer does take 110 !!!
They have take $8 per year for years 1 to 3 and then $102 in year 3.
That is exactly the same as taking $8 per year in years 1 and 2, and then $110 in year 3.
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