Homework week 4
Attempt 2
Written: Apr 14, 2011 6:02 PM  Apr 14, 2011 6:04 PM
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Question 1
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Problem 1019
Bonds issued by the Tyler Food Corporation have a par value of $1,000, are selling for $1,080, and
have 20 years remaining to maturity. The annual interest payment is 12.5 percent ($125). Compute
the approximate yield to maturity, using Formula 102.
Round your answer to 2 decimal places. Omit the "%" sign in your response.
Answer:
11.55
Information
Problem 1022
You are called in as a financial analyst to appraise the bonds of Olsen’s Clothing Stores. The
$1,000 par value bonds have a quoted annual interest rate of 13 percent, which is paid
semiannually. The yield to maturity on the bonds is 10 percent annual interest. There are 25
years to maturity.
Question 2
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 Spring '09
 MASON
 Finance, Interest, Decimal, decimal places

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