Question 8 (1 point) A bond has a $1,000 par value, 9 years to maturity, and...

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Question

business finance

Answer 1

Answer #1

To find the YTM, we need to put the following values i the financial calculator:

N = 9;

PV = -975;

PMT = 8%*1000 = 80;

FV = 1000;

Press CPT, then I/Y, which gives us 8.40%

YTM = 8.40%

Hence, Option "D" is correct.

Answer 2

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