dit View History Bookmarks People Window Help Ch 3 Classroom Problem Solutions (

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dit View History Bookmarks People Window Help Ch 3 Classroom Problem Solutions (1) https://unt.instructure.com/courses/2913/quizzes/15342/take Torre.. SupplementWareho....D 1-94 Admission Nul... OEM FBAC9072AC. Other Bookr us The duration to two decimal places is [DUR] years. ules DI Question 2 10 pts ce 365 s Notebook nes & Noble Consider a coupon bond that has a S 1,000 par value and a coupon rate of 10%. The bond is currently selling for $1,150 and has 8 years to maturity What is the bond's yield to maturity to 2 decimal places? [YTM D | Question 3 10 pts Property taxes in DeKalb County are roughly 2.66% of the purchase price every year If you just bought a $100,000 home, what is the PV of all the future property tax payments to the st penny? SIPVTAX

Explanation / Answer

Computation of YTM

YTM = [Coupon + (Face Value - Market Price)/ No. of Years] / [(Face Value + Market Price) / 2]

YTM = [$100 + ($1000 - $1150)/ 8] / ($1000 + $1150) / 2

YTM = $81.25 / $1075

YTM = $81.25 / $1075 = 7.56%

By Using Excel the Answer is 7.44%

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