Homework Help: Business

Posted by Adrian on Tuesday, January 11, 2011 at 3:46am.

A bond price of $987.50 has a face value of $1000, pays 5% semiannually, and will repay the face value in 15 years.

5% tables Present Values Pv Annuity
year 13 .53032 9.39357
year 14 .50507 9.89864
year 15 .48102 10.37966

What is the yield to maturity of the loan

a) 4.9%
b) 5.14%
c) 5.00%
d) 2.57%

Can you please include how you got the answer?

Business - SraJMcGin, Tuesday, January 11, 2011 at 10:04am
Here are some links to try:

http://search.yahoo.com/search?fr=mcafee&p=how+to+find+the+yield+to+maturity%2C+etc.+of+a+bond

Sra

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