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Ch_07_HW_A_Solutions

# Ch_07_HW_A_Solutions - r = 1.72 6(1 R =(1 r(1 h 1.055...

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Ch 07 HW Solutions 1 Ch 07 HW Solutions 1. Answer N I/Y PMT PV FV PV 6 11.00% 80.00 ? 1,000 873.08 2. Answer N I/Y PMT PV FV YTM 9 ? 80.00 946.65 1,000 8.89% 3. Answer N I/Y PMT PV FV PMT Coupon Rate 14 6.00% ? 1,600.00 1,000 124.55 12.46% 4. Answer N I/Y PMT PV FV I/Y YTM 16 ? 48.00 990.00 1,000 4.891559087% 9.78% (I/Y x 2) N = 8 * 2 PMT = (9.60% / 2) x 1,000 5. (1 + R) = (1 + r)(1 + h) 1.0325 = (1 + r)(1.015) r = 1.72%

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Unformatted text preview: r = 1.72% 6. (1 + R) = (1 + r)(1 + h) 1.055 = (1.03)(1 + h) h = 2.43% 7 - 10. Answer N I/Y PMT PV FV PV 7 10 6.00% 75.00 ? 1,000 1,110.40 8 10 8.00% 55.00 ? 1,000 832.25 9 8 6.00% 75.00 ? 1,000 1,093.15 10 8 8.00% 55.00 ? 1,000 856.33 Ch 07 HW Solutions 2 11. 5.95% 12. 41.18% 13. 5,175.00 14. 1,017.50...
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