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slavikrds [6]
3 years ago
11

What is the yield to maturity of a nineminusyear bond that pays a coupon rate of​ 20% per​ year, has a​ $1,000 par​ value, and i

s currently priced at​ $1,407? Assume annual coupon payments.

Business
1 answer:
snow_lady [41]3 years ago
8 0

Answer:

12.28%

Explanation:

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

The NPER represents the time period.  

Given that,  

Present value = $1,407

Future value or Face value = $1,000  

PMT = $1,000 × 20% = $200

NPER = 9 years

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 12.28%

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2 years ago
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2 years ago
which of the following is not one of the six functional areas of business that sits on a foundation of business law?
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Answer:

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