Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
YTM can be determined using the price formula of a bond.
Part a
The present value (price) formula for a zero coupon bond is:
PV = F/(1+i)n
Plugging in the given information,
$300 = $1000/(1+i)15
(1+i)15 = 3.33
1+i = 1.08357
i = YTM = 0.08357 = 8.36%
Thus the YTM of the fifteen-yr zero coupon bond is 8.36%.
Part b
Semiannual coupon = 6%*$500/2 = $15
Price = $15/(1+(i/2)) + $15/(1+(i/2))2 +..... + $15/(1+(i/2)6 + $500/(1+(i/2)6 = $400
On trial and error using Excel, YTM has been determined to be 7.23%.
Thus the YTM of the three-yr semiannually 6% coupon bond is 14.45%.
Littlefield Laboratories is a state-of-the-art highly automated blood samples testing lab. The demand of blood sample testing for the previous 20 days (day 1 to day 20) are given i
writing a Introduction on Metaphor
A testing organization is evaluating the effectiveness of sinus relief tablets, Relief and SineOut. As part of the analysis the organization collects 44 sinus sufferers and random
difference between histogram and historigram
IASB -International Accounting Standards Board : IASB is an independent body based in London, which is responsible for setting accounting standards. IASB started operations in the
what is the largest coefficient of (1+3x)^4 is ?
A coin was flipped twenty times and landed on heads fifteen times. If the coin was balanced fair what is the probability of a head on the next toss
1. Describe two graphs/tables and how they are used to examine data. 2. Why are graphs and tables useful when examining data? 3. Describe how to make a histogram and a freque
What is a purchase return? A buy purchase return occurs when a buyer profits products that it has bought from a provider. Under the regular inventory system, the cost of the
Rocco works for an international arms dealer who has just publicly listed. What with the world being how it is these days, there's money to be made on more than just selling the to
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd