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13 #5 14 Caribbean Reef Software has 8.4 percent coupon bonds on the market with 9 years to maturity. The bonds make semiannu

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Answer #1

rate positively ..

Ans 5
we have to use financial calcualtor to solve this
put in calculator -
FV 1000
PMT 1000*8.4%/2 42
N 9*2 18
PV -955
Compute I 4.57%
Therefore YTM = 4.57%*2 9.14%
Ans 6
we have to use financial calcualtor to solve this
put in calculator -
I 6%
PMT 1000*7% 70
N 9
FV 1000
Compute PV ($1,068.02)
Price = $1,068.02
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