For 126 consecutive days, a process engineer has measured the temperature of champagne bottles as they are made ready for servin
1 answer:
You might be interested in
Answer:
yield of maturity =3.60 %
Explanation:
given data
face value FV = $1000
coupon rate r = 4.5%
no of compounding peryear = 2
time period t = 30 year
solution
first we get here interest per period that is PMT
PMT = FV × r ÷ 2
PMT = 1000 × 4.5% ÷ 2 = 23
now we get here bond value that is
bond value = 1000 × (116 + )%
bond value = 1163.75
and
number of compound period till the maturity will be NPER
NPER = no of compounding peryear × time period
NPER = 30 × 2 = 60
so now we get here yield of maturity by excel formula that is
yield of maturity = RATE(NPER,PMT,-PV,FV) × 2
yield of maturity = RATE(60,22.5,-1163.75,1000) × 2
yield of maturity =3.60 %