Question

Parkway Void Co. issued 14-year bonds two years ago at a coupon rate of 9.7 percent. The bonds make semiannual payments. 

If these bonds currently sell for 102 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 

Lion Corp. has a $5,000 par value bond outstanding with a coupon rate of 4.8 percent paid semiannually and 10 years to maturity. The yield to maturity on this bond is 4.3 percent. What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer 1

Calculate the YTM as follows: fax =2*RATE (14-2)*2,-1000*9.7%/2,1000*102%,-1000) Function Arguments ? X RATE Nper (14-2)*2 Pmt -1000*9.7%/2 Pv 1000*102% Fv -1000 1 1 1 1 1 = 24 = 48.5 = 1020 = -1000 = number Type = 0.047091316 Returns the interest rate per period of a loan or an investment. For example, use 6%/4 for quarterly payments at 6% APR. Nper is the total number of payment periods for the loan or investment. Formula result 0.094182633 Help on this function D ok Cancel YTM is 9.42%. (Rounded to two decimals)|

Calculate the price as follows: fx =PV(4.3%/2,10*2,-5000*4.8%/2,-5000) Function Arguments ? X PV Rate 4.3%/2 Nper 10*2 Pmt -5000*4.8%/2 Fv -5000 Type 1 1 1 1 1 1 = 0.0215 = 20 = -120 = -5000 = number = 5201.464871 Returns the present value of an investment: the total amount that a series of future payments is worth now. Type is a logical value: payment at the beginning of the period = 1; payment at the end of the period = 0 or omitted. Formula result = 5201.464871 Help on this function OK Cancel Price is $5,201.46. (Rounded to two decimals)