Question
Please show work from financial calculator: You own a bond with a par value of $1,000 and a coupon rate of 8.50% (semiannual coupon). You
Please show work from financial calculator:
You own a bond with a par value of $1,000 and a coupon rate of 8.50% (semiannual coupon). You know it has a current yield of 7.00%. What is its yield to maturity? The bond has 6 years to maturity. Current Yield = (annual payment / price). (hint: solve for price to answer the question). a. 4.40% b. 4.79% c. 4.71% d. 4.73% e. 4.77%
You just opened a brokerage account, depositing $2,000. You expect the account to earn an interest rate of 8.84%. You also plan on depositing $2,000 at the end of years 5 through 10. What will be the value of the account at the end of 20 years, assuming you earn your expected rate of return? a.47,318 b. 44,285 c. 48,761 d. 45,844 e. 47,316
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