Chapter 7 Homework Solutions

Chapter 7 Homework Solutions - 45, PMT 829, +/-, PV 1104,...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7 Homework Solutions 7.2) a. CY = 70/985 = 7.1% c. 14, N 1000, FV b. 2, □, P/YR 35, PMT □, BEG/END 7.2, I/YR 985, +/-, PV PV = $989.15 1000, FV 35, PMT 20, N I/YR = 7.2% 7-3) 1000, FV 45, PMT 16, N 8.5, I/YR PV = $1,028.60 7-4) YTM: 20, N YTC: 10, N 1000, FV 1050, FV 1100, +/-, PV 1100, +/-, PV 40, PMT 40, PMT I/YR = 6.62% I/YR = 6.49% Expect to earn 6.49% (YTC) since interest rates have declined. 7-6) a. Years to Maturity Price of Bond C Price of Bond Z 4 $1,013.03 $693.04 3 $1,010.22 $759.57 2 $1,007.13 $832.49 1 $1,003.73 $912.41 0 $1,000.00 $1,000.00 7-9) a. 1) 8, N 2) 8, N 1000, FV 1000, FV 45, PMT
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 45, PMT 829, +/-, PV 1104, +/-, PV I/YR = 14.8% I/YR = 6.03% b. Yes, since the YTM is 14.8% 7.13) 10, N CY = .0821 = 80 / Price 1000, FV Price = $974.42 40, PMT 974.42, +/-, PV I/YR = 8.6% 7.14) 14, N Since PMT = $55, annual interest = $110. 1020, +/-, PV 1000, FV So, CY = 110 / 1020 = 10.78% 10.5883, I/YR PMT = $55 7-20) a. YTM: 1000, FV b. YTC: 1090, FV 20, N 10, N 55, PMT 55, PMT 1175, +/-, PV 1175, +/-, PV I/YR = 8.4% I/YR = 8.2% c. Expect to earn 8.2% (YTC) since interest rates have declined....
View Full Document

Page1 / 2

Chapter 7 Homework Solutions - 45, PMT 829, +/-, PV 1104,...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online