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Answer:
$271.97
Explanation:
For this question we use the PMT i.e monthly payment that is presented on the attached spreadsheet. Kindly find it below:
Data provided in the question
Given that,
Present value = $30,000
Future value = $0
Rate of interest = 4.70% ÷ 12 months = 0.391666%
NPER = 10 years × 12 months = 120 months
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the monthly payment is $271.97
Answer:
2.32%
Explanation:
The formula for bond equivalent yield is in the attachment, we use it with the values provided in this question.
First, use the discount yield to calculate the price (P) of the bond
Face value = $1,000,000
Discount yield = 2.29 or 0.0229 as a decimal
Discount yield = [ (FV - P)/P ] *(360/T)
0.0229 =[ (1,000,000 -P)/P ] *360/69
0.0229P = (1,000,000 -P )5.2174
0.0229P + 5.2174P = 5,217,391.30
Price; P = $995,628.3618
Next, plug in the numbers in the bond equivalent yield (BEY) formula;
BEY = [ (1,000,000 - 995,628.3618)/$995,628.3618 ] * 365/69
BEY = 0.02323 OR 2.32%
