newconnect.mheducation.com Assignments: FA18: 1-CORE Chegg Study | Guided S HW 6
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newconnect.mheducation.com Assignments: FA18: 1-CORE Chegg Study | Guided S HW 6 Re: BUS-F370 Midterm Campus Tutoring Service Fantasy Football I Yahool HW 6 Saved Help Save & Exit Submit Check my work 5 You buy a bond for $964 that has a coupon rate of 6.60% and a maturity of 7-years. A year later, the bond price is $1104. (Assume a face value of $1,000 and annual coupon payments.) 9.09 points a. What is the new yield to maturity on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Yield to maturity eBook Print b. What is your rate of return over the year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) References Rate of return Mc Graw Prev 5 of 1 Next >Explanation / Answer
Yield to maturity 4.58%
Rate of return
Rate of return =((1104-964)+66)/964=21.37%
NPER 6 PMT 66 PV -1104 FV 1000 =RATE(6,66,-1104,1000) 4.58%Related Questions
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