What is the yield to maturity

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1. A STRIPS has a $9,000 par value and a market value of $7,050. The time to maturity is 5 years. What is the yield to maturity?

A.     2.07 percent

B.     3.00 percent

C.     4.94 percent

D.     5.00 percent

E.     5.07 percent

2. You have just received notification that you have won the $3 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 60 years from now.

a. What is the present value of your windfall if the appropriate discount rate is 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Present value $

Reference no: EM131298181

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