a) | |||
FV= PV*(1+r)^n | |||
Where, | |||
FV= Future Value | |||
PV = Present Value | |||
r = Interest rate | |||
n= Number of years | |||
1000=741.22*(1+r)^5 | |||
r =6.17% | |||
YTM = 6.17% | |||
b) | FV= PV*(1+r)^n | ||
Where, | |||
FV= Future Value | |||
PV = Present Value | |||
r = Interest rate | |||
n= Number of years | |||
1000 = $725*( 1+r)^5 | |||
r =6.64% | |||
YTM =6.64% | |||
mu Saved Help Save & Exit A zero-coupon bond with face value $1,000 and maturity of...
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