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Question 20 Chrysler has a bond outstanding with eight years remaining to maturity, a coupon rate of 5 percent, and semiannua

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Answer #1

using excel rate function

Yield to maturity = RATE(number_of_periods, payment_per_period, present_value, [future_value], [end_or_beginning], [rate_guess]) * number of compounds in a year

= RATE(16,50/2,-729.05,1000)

= 10%

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