In: Finance
You just purchased an investment at a price of $1250. You will receive $1900 at the end of 8 years. If the interest rate is compounded semi-annually, what is your yield to maturity? Do not write any symbol (%, $, #, &,...). Express your answers as a percentage. Round your answer to the nearest one-hundredth percentage point. For example, write 12.56 for 12.56%.
we have to use financial calculator to solve this | ||
put in calculator | ||
FV | 1900 | |
PV | -1250 | |
PMT | 0 | |
N | 8*2 | 16 |
Compute I | 2.65% | |
YTM = 2.65%*2 | 5.30% | |
Ans = 5.30 |