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GALE MINDIR Ch 07 End-of-Chapter Problems Check My Work (No more tries available) o Problem 7-4 Yield to maturity A firms bo
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Answer #1

a) Nominal yield to maturity:

=RATE(nper,pmt,pv,fv)

=RATE(12*2,8%/2*1000,-1114.81,1000)*2

=6.60%

b) Yield to call:

=RATE(6*2,8%/2*1000,-1114.81,1061)*2

=6.51%

c) Statement I is correct

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