Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Could someone show me what to calculate to get the percentage below? 1. N=182=36PMT=9.735%1000/2=48.675I/Y=7.95%/2=3.975%FV=1000 CPT PV=$1,169.34 2. N=52=10 PMT =9.735%1000/2=48.675 FV=1000(1+13.5%)=1135 PV=1169.34 CPT I/Y=2.893% Could
Could someone show me what to calculate to get the percentage below?
1. N=182=36PMT=9.735%1000/2=48.675I/Y=7.95%/2=3.975%FV=1000 CPT PV=$1,169.34 2. N=52=10 PMT =9.735%1000/2=48.675 FV=1000(1+13.5%)=1135 PV=1169.34 CPT I/Y=2.893% Could someone show me how we came up with this percentage? Hence, realized yield =2.893%2=5.786% 3. As yield to call is less than yield to maturity the bond will be called and the bondholder will expect to earn 5.786%Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started