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Unformatted text preview: maturity? (The answer is returned as a decimal; format the cell to get a percent.) RATE 4.00%(8%/2) NPER 50(25*2) PMT 4.5(9%*100/2) FV 100(Using 100 par so that PV will give price as % of par) Price $110.74 Formula: -PV(B3,B4,B5,B6) NPER 50(25*2) PMT 4.5(9%*100/2) PV-95(Entered as a % of par and negative for sign convention) FV 100 YTM 9.53%(Returns as a whole percent, format to get decimal places) Formula: =2*RATE(B11,B12,B13,B14) You are looking at a bond that has 25 years to maturity. The coupon rate is 9% and coupons are paid semiannually. The yield-to-maturity is 8%. What is the current price? You are looking at a bond that has 25 years to maturity. The coupon rate is 9% and coupons are paid semiannually. The current price is $950. What is the yield to maturity? (Have to multiply by 2 because it returns a semiannual rate)...
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This note was uploaded on 10/25/2011 for the course ECON 393 taught by Professor D during the Spring '10 term at Rutgers.
- Spring '10