7. Problem 12-07 maturity Computer Problem 12-07 Musume that you purchased an 10%, 25-year $1,000 par,...

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7. Problem 12-07 maturity Computer Problem 12-07 Musume that you purchased an 10%, 25-year $1,000 par, semiannual payment bon

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Answer 1

Answer #1

1.

Calculating YTM,

Using TVM Calculation,

I = [FV = 1,000, PV = -1,013, PMT = 50, N = 50]

I = 9.86%

2.

Calculating YTC,

Using TVM Calculation,

I = [FV = 1,100, PV = -1,013, PMT = 50, N = 10]

I = 11.20%

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Answer 2

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