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Ksju [112]
3 years ago
11

Pelzer Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have a 8% annual coupon rate and were issued

1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $910.40. The capital gains yield last year was -8.96%.What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.

Business
1 answer:
ICE Princess25 [194]3 years ago
5 0

Answer:

9.53%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

NPER - 9 years

PMT - $1,000 × 8% = $80

Present value = $910.40

Future value = $1,000

The formula is shown below:

= Rate(NPER;PMT;PV;FV;Type)

The present value come in negative

So, after solving this, the answer would be 9.53%

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3. A project manager is trying to complete a software development project, but cannot get enough attention for the project. Reso
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2 years ago
If the expected rate of inflation was 3% and the actual rate was 6.2%; the systematic response coefficient from inflation, would
Semenov [28]

The systematic response coefficient from inflation, would result in a change in any security return of <u>3.2 βI</u>.

<u>Explanation</u>:

<em><u>Given</u></em>:

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Actual rate of inflation = 6.2%

The change in security return can be calculated by obtaining the differences between actual and expected levels of inflation.

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                                                     = 3.2%

<u>Change in security return= 3.2 βI </u>

<u></u>

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