EQuestion Help X Problem 7-22 (similar to) is$700, and ithas a par vaue of $1,000. The...

Question

Question

business finance

Answer 1

Answer #1

Using financial calculator

Input: FV= 1000

PV = -700

N= 11*2 = 22

PMT= 6%*1000/2 = 30

Find I/Y which is the semiannual YTM as 5.35%

Hence YTM = 5.35%*2 = 10.7%

Excel formula rate can also be used to derive the semiannual YTM as

Answer 2

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