Question

In: Finance

 Abner​ Corporation's bonds mature in 23 years and pay 9 percent interest annually. If you purchase...

 Abner​ Corporation's bonds mature in 23 years and pay 9 percent interest annually. If you purchase the bonds for $1,125​, what is your yield to​ maturity?

Solutions

Expert Solution

The yield to maturity of the bond can be calculated with the help of RATE function of Excel

Inputs requied:

N = 23

FV = 1000

PMT= 9%/2 * 1000 = 45

PV = 1125

The Rate function is:

=RATE(23,45,-1125,1000,0,0.11)

= 3.6847%

YTM = 3.68%

jeff jeffy answered 3 years ago
Next > < Previous

Related Solutions

 Abner​ Corporation's bonds mature in 17 years and pay 14 percent interest annually. If you purchase...
 Abner​ Corporation's bonds mature in 17 years and pay 14 percent interest annually. If you purchase the bonds for ​$1,225​, what is your yield to​ maturity?
 Abner​ Corporation's bonds mature in 25 years and pay 7 percent interest annually. If you purchase...
 Abner​ Corporation's bonds mature in 25 years and pay 7 percent interest annually. If you purchase the bonds for ​$725​, what is your yield to​ maturity? (round to 2 decimal points)
 Abner​ Corporation's bonds mature in 17 years and pay 11 percent interest annually. If you purchase...
 Abner​ Corporation's bonds mature in 17 years and pay 11 percent interest annually. If you purchase the bonds for ​$850​, what is your yield to​ maturity?
 ​(Yield to​ maturity)  Abner​ Corporation's bonds mature in 18 years and pay 9 percent interest annually....
 ​(Yield to​ maturity)  Abner​ Corporation's bonds mature in 18 years and pay 9 percent interest annually. If you purchase the bonds for ​$825​, what is your yield to​ maturity? Your yield to maturity on the Abner bonds is nothing​%. ​(Round to two decimal​ places.)
1- Abner​ Corporation's bonds mature in 19 years and pay 8 percent interest annually. If you...
1- Abner​ Corporation's bonds mature in 19 years and pay 8 percent interest annually. If you purchase the bonds for ​$1,075​, what is your yield to​ maturity? Your yield to maturity on the Abner bonds is _​%. ​(Round to two decimal​ places.) 2- The Saleemi​ Corporation's ​$1,000 bonds pay 9 percent interest annually and have 11 years until maturity. You can purchase the bond for ​$955. a.What is the yield to maturity on this​ bond? b.Should you purchase the bond...
​(Yield to​ maturity) Abner​ Corporation's bonds mature in 25 years and pay 14 percent interest annually....
​(Yield to​ maturity) Abner​ Corporation's bonds mature in 25 years and pay 14 percent interest annually. If you purchase the bonds for $1,125​, what is your yield to​ maturity? Your yield to maturity on the Abner bonds is__%        (Round to two decimal​ places.) ​ (Bond valuation)The 8​-year $1,000 par bonds of Vail Inc. pay 8 percent interest. The​ market's required yield to maturity on a​ comparable-risk bond is 11 percent. The current market price for the bond is $920. a.  ...
 The Saleemi​ Corporation's ​$1,000 bonds pay 5 percent interest annually and have 9 years until maturity....
 The Saleemi​ Corporation's ​$1,000 bonds pay 5 percent interest annually and have 9 years until maturity. You can purchase the bond for ​$955 a.  What is the yield to maturity on this​ bond? b.  Should you purchase the bond if the yield to maturity on a​ comparable-risk bond is 4 percent?
The Saleemi​ Corporation's ​$1000 bonds pay 9 percent interest annually and have 11 years until maturity....
The Saleemi​ Corporation's ​$1000 bonds pay 9 percent interest annually and have 11 years until maturity. You can purchase the bond for ​$925. a.  What is the yield to maturity on this​ bond? (round to 2 decimal points) b.  Should you purchase the bond if the yield to maturity on a​ comparable-risk bond is 9 ​percent?
The Saleemi​ Corporation's ​$1000 bonds pay 5 percent interest annually and have 9 years until maturity....
The Saleemi​ Corporation's ​$1000 bonds pay 5 percent interest annually and have 9 years until maturity. You can purchase the bond for ​$1135. a.)What is the yield to maturity on this​ bond? b.)Should you purchase the bond if the yield to maturity on a​ comparable-risk bond is 5 ​percent?
​(Related to Checkpoint​ 9.2)  ​(Yield to​ maturity)  Abner​ Corporation's bonds mature in 24 years and pay...
​(Related to Checkpoint​ 9.2)  ​(Yield to​ maturity)  Abner​ Corporation's bonds mature in 24 years and pay 14 percent interest annually. If you purchase the bonds for ​$1 comma 125​, what is your yield to​ maturity? Your yield to maturity on the Abner bonds is nothing​%. ​(Round to two decimal​ places.)
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT