Question

hacker software has 11.8 percent coupon bonds on the market with 15 years to maturity. the bonds make semiannual payments and currently sell for 108.7 percent of par. what is the current yield on the bonds? (round your answer to 2 decimal places. (e.g., 32.16)) current yield 10.86 % what is the ytm? (round your answer to 2 decimal places. (e.g., 32.16)) ytm 10.63 % what is the effective annual yield? (do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) effective annual yield %

Answer 1

The hacker software program has 11.eight percent coupon bonds on the market with 15 years to adulthood. The bonds make an annual yield and currently promote 108.7 percent of par.

The modern yield at the bonds

current yield at the bonds = 11.eight%/108.7%

the current yield on the bonds = 10.86%

The common annual yield is the income received from an investment divided by way of the length of time the funding is owned. an average annual yield is a useful device for studying the return on floating-rate investments.

YTM = price(nper,pmt,pv,fv) * 2

YTM = fee(15*2,59,-1087,a thousand) * 2

YTM = 10.63%

The effective annual yield

effective annual yield = (1+10.sixty three%/2)^2 - 1

effective annual yield = 10.91%

The annual percentage yield is usually calculated by means of multiplying the hobby rate by means of the variety of compounded intervals in line with 12 months.

Learn more about annual yield here

brainly.com/question/27997520

#SPJ4