Window Help Chrome File Edit View History Bookmarks People P586 Interest Rates a

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Window Help Chrome File Edit View History Bookmarks People P586 Interest Rates and Bonds)-Jordan MacFarl Secure https:/xlitemprod.pearsoncmg.com/api/vt/print/en-us/finance Instructor: Mathew Imes Course: Financial Management (Fin 3101) Summer 1 Student: Jordan MacFarlane Date: 64/18 . Yield to maturity, What is the yeld of each of the olowing bonds f interest (coupon)is paid annually? Yleld to Years to Coupon RateMaturity Par Value $5,000.00 $5000.00 $1,000.00 $5,000.00 12% 7% 0% Price $6,500.00 $4,800.00 $1,080.00 3,700.00 1 10 a. What is the yield of the following bond if interest (coupon) is paid annually? (Round to two decimal places.) Years to Yield to Par Value Coupon Rate Maturity $5,000.00 Price %| S6-500.00 b. What is the yield? of the tolowing bond t interest (coupon) is paid annually? (Round to two decimal places.) Years to Yield to Par Value Coupon Rate Maturity $5,000.00 Price $4.80000 %| c. What is the yield of the following bond if interest (coupon) is paid annually? Round to two decimal places) Years to Par Value Coupon Rate Maturity $1,000.00 Yleld to Maturity %| $1,080 00 d. What is the yield of the following bond if interest (coupon) is paid annually? (Round to two decimal places.) Years to Yield to 10 %| $3.70000 ?? 2

Explanation / Answer

6-

par value

coupon rate

Yield to maturity

Yield to maturity

Price

5000

12%

5

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 5 PMT = 5000*12% = 600 pv= 6500 fv = 5000 Type = 0

5.06%

6500

5000

7%

5

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 5 PMT = 5000*7% = 350 pv= 4800 fv = 4800 Type = 0

8.00%

4800

1000

8%

5

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 5 PMT = 1000*8% = 80 pv= -1080 fv = 1000 Type = 0

6.10%

1080

5000

5%

10

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 10 PMT = 5000*5% = 250 pv= -3700 fv = 5000 Type = 0

9.06%

3700

par value

coupon rate

Yield to maturity

Yield to maturity

Price

A-

5000

12%

5

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 5 PMT = 5000*12% = 600 pv= 6500 fv = 5000 Type = 0

5.06%

6500

B-

5000

7%

5

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 5 PMT = 5000*7% = 350 pv= 4800 fv = 4800 Type = 0

8.00%

4800

C-

1000

8%

5

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 5 PMT = 1000*8% = 80 pv= -1080 fv = 1000 Type = 0

6.10%

1080

D-

5000

5%

10

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 10 PMT = 5000*5% = 250 pv= -3700 fv = 5000 Type = 0

9.06%

3700

6-

par value

coupon rate

Yield to maturity

Yield to maturity

Price

5000

12%

5

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 5 PMT = 5000*12% = 600 pv= 6500 fv = 5000 Type = 0

5.06%

6500

5000

7%

5

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 5 PMT = 5000*7% = 350 pv= 4800 fv = 4800 Type = 0

8.00%

4800

1000

8%

5

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 5 PMT = 1000*8% = 80 pv= -1080 fv = 1000 Type = 0

6.10%

1080

5000

5%

10

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 10 PMT = 5000*5% = 250 pv= -3700 fv = 5000 Type = 0

9.06%

3700

par value

coupon rate

Yield to maturity

Yield to maturity

Price

A-

5000

12%

5

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 5 PMT = 5000*12% = 600 pv= 6500 fv = 5000 Type = 0

5.06%

6500

B-

5000

7%

5

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 5 PMT = 5000*7% = 350 pv= 4800 fv = 4800 Type = 0

8.00%

4800

C-

1000

8%

5

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 5 PMT = 1000*8% = 80 pv= -1080 fv = 1000 Type = 0

6.10%

1080

D-

5000

5%

10

YTM = using rate function in MS excel = rate(nper,pmt,pv,fv,type) nper = 10 PMT = 5000*5% = 250 pv= -3700 fv = 5000 Type = 0

9.06%

3700

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