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3 years ago

NEED HELP ASAP

Business

1 answer:

Anna71 [15]3 years ago

7 0

Answer:

4.93%

Explanation:

For computing the yield to maturity we need to apply the RATE formula i.e to be shown in the attachment below:

Provided that,

Present value = $1,046.487

Future value or Face value = $1,000

PMT = 1,000 × 5.524% ÷ 2 = $27.62

NPER = 10 years × 2 = 20 years

The 10 years is come from

= May 2029 - May 2019

= 10 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula,

The yield to maturity is

= 2.46% × 2

= 4.93%

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Answer:

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