you'll want to assume semi-annual "payments" to get a Bond Equivalent Yield (BEY) so you have 20 years * 2 times per year = 40 total "cash flows" CF.
Your cash flows are:
CF0: - 180
CFs#1 - 39: $0
CF#40: $1,000
solve for IRR, which will be a semi-annual rate, multiply by 2 for BEY...I get 8.76043%
Joe’s Shoe Shop issues zero coupon bonds on the market price of $180 per bond. Each bond has
a face value of $1,000 payable at maturity in 20 years. What is the YTM of these bonds? How do I solve?
