15.4 yield rate solutions[1]

15.4 yield rate solutions[1] - 7.00730957 j 2 = 7.01% 4 2 5...

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4/12/2010 1 4 2 5 1 0011 0010 1010 1101 0001 0100 1011 15.4 Yield Rate 4 2 5 1 0011 0010 1010 1101 0001 0100 1011 Solve using BAII Plus Enter: FV = + Face Value PMT = +FV × b PV = -Purchase Price P/Y = ___ C/Y = ___ N = ___ CPT I/Y =___ %
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4/12/2010 2 4 2 5 1 0011 0010 1010 1101 0001 0100 1011 A $25,000, 7.5% bond with semi-annual coupons redeemable at par in 10 years is purchased at 103.5. What is the yield rate? Purchase Price = 25,000 × 103.5% = 25,000 × 1.035 = 25,875 Enter: FV = +25,000 PMT = 25,000 × (.075/2) = +937.50 PV = -25,875 P/Y = 2 C/Y = 2 N = 2 × 10 = 20 CPT I/Y =
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Unformatted text preview: 7.00730957 j 2 = 7.01% 4 2 5 1 0011 0010 1010 1101 0001 0100 1011 A $1,000, 6% bonds with semi-annual coupons redeemable at par in 17 years was purchased at 97.375. What is the yield rate? Purchase Price = 1,000 97.375 % = 1,000 .97375 = 973.75 Enter: FV = +1,000 PMT = 1,000 (.06/2) = +30 PV = - 973.75 P/Y = 2 C/Y = 2 N = 2 17 = 34 CPT I/Y = 6.252945 j 2 = 6.25% 4/12/2010 3 4 2 5 1 0011 0010 1010 1101 0001 0100 1011 Homework : Ex. 15.4, pg. 657 #1. 5.86% #2. 11.62% #3. 7.92% #4. 8.33% Lab 10...
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15.4 yield rate solutions[1] - 7.00730957 j 2 = 7.01% 4 2 5...

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