Homework Answers
Part 1]
YTM = 5.04% , which is 0.0504
This is seen in the last column of the table, under the heading "yield"
Part 2]
cost = (price / 100) * face value
We divide by 100 because the price is quoted as a % of par value. Price is seen in the table under the heading "price".
cost = (97.94 / 100) * $1,000
cost = $979.40
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