Homework Answers
To find the find the yield, we need to put the following values in the financial calculator:
N = 5*2 = 10;
PV = -1064.28;
PMT = (8.5%/2)*1000 = 42.5;
FV = 1083.64;
Press CPT, then I/Y, which gives us 4.14
Periodic Rate = 4.14%
Annual Yield = Periodic rate * No. of compounding periods in a year = 4.14% * 2 = 8.29%
So, Option "E" is correct.
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Would you be able to solve #6 problem using only a
financial calculator ?
Thanks in advance for your time.
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