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Iteru [2.4K]
4 years ago
10

Stein Co. issued 13-year bonds two years ago at a coupon rate of 10.3 percent. The bonds make semiannual payments. If these bond

s currently sell for 95 percent of par value, what is the YTM?
Mathematics
1 answer:
Firlakuza [10]4 years ago
4 0

Nper = 11*2 = 22 (indicates the period over which interest payments are made)

PMT = 1000*10.3%*1/2 = 51.5 (indicates sem-annual interest payments)

PV = 1000*95% = 950 (indicates the current selling price of the bonds)

FV = 1000 (indicates the face value of bonds)

Rate = ? (Indicates YTM)


YTM = Rate(Nper,PMT,PV,FV)*2 = Rate(22,51.5,-950,1000)*2 = 11.098% or 11.10%


Answer is 11.098% or 11.10%.

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6 2/3 times 2 plus 3 1/5 times 2
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Answer:

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Step-by-step explanation:

We have the problem:

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6 2/3 can be written as (6 + 2/3), and 3 1/5 can be written as (3 + 1/5). So, we can then use the distributive property:

(6+2/3)*2+(3+1/5)*2=12+4/3+6+2/5=18+4/3+2/5

Now, we need to combine the fractions by finding a common denominator. Here, the common denominator is 3 * 5 = 15: 4/3 +2/5=20/15+6/15=26/15=1\frac{11}{15}

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