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Sladkaya [172]
3 years ago
10

There is a bond that has a quoted price of 110.547 and a par value of $2,000. The coupon rate is 7.05 percent and the bond matur

es in 19 years. If the bond makes semiannual coupon payments, what is the YTM of the bond?
Business
1 answer:
olga55 [171]3 years ago
6 0

Answer:

the YTM of the bond is 127.55 %

Explanation:

The YTM of the bond is the Market return that similar Bond Holders expect from the bond.

This can be calculated using a Financial calculator as :

PV = - $ 110.547

FV =  $2,000

PMT =  $2,000 x 7.05 % x 1/2 = $70.50

N = 19 x 2 = 38

P/yr = 2

YTM = ???

Therefore, the YTM of the bond is 127.55 %

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Answer:

The answer is below

Explanation:

A What is the probability that all 4 selected workers will be the day shift?

B What is the probability that all 4 selected workers will be the same shift?

C What is the probability that at least two different shifts will be represented among the selected workers.

A)

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The probability that all 4 selected workers will be the day shift is given as:

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P_C=1-P_B\\\\P_C=1-0.0278\\\\P_C=0.972

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