7.2
A bond has a $1,000 par value, 8 years to maturity, and a 6% annual coupon and sells for $930.
%
$
a) YTM is calculated using the RATE function:-
=RATE(nper,pmt,pv,fv)
=RATE(8,6%*1000,-930,1000)
=7.18%
b) Price after 3 years:-
=PV(rate,nper,pmt,fv)
=PV(7.18%,5,6%*1000,1000)
=951.83
7.2 A bond has a $1,000 par value, 8 years to maturity, and a 6% annual...
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