00:03
The pair value is $1 ,000.
00:05
The current price is $891 .62.
00:08
And our annual coupon here is $82, where the annual ytm is 10%.
00:13
The semi -annual ytm is 5%.
00:16
And so we can calculate our effective annual rate.
00:22
That's equal to 1.
00:24
Add the semi -annual y -tm, that's to the power 2 minus 1.
00:31
So what we end up with is 1 add 0 .05, the semi -annual ytm, to the power 2 minus 1.
00:40
And so that gives us 10 .25%.
00:46
And the time for maturity is n number of years, where we take 891 .62, which is equal to $82, multiplied by pvifa, which is 10 .25%...