Problem 5-10 (similar to (Solving for in compound interest) You lend a friend $5,000, for which...

Question

Question

business finance

Answer 1

Answer #1

Calculate the YTM as follows:

X Info =RATE(14,,-5000,22000) Function Arguments ? X RATE Nper 14 = 14 E = number Pmt Pv -5000 220001 = -5000 = 22000 FV Type

Therefore, the interest rate is 11.16%.

Answer 2

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