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?

## Answer This Question

## Related Questions

- accounting - A bond price of $987.50 has a face value of $1000, pays 5% ...
- Engineering economy - General Electric issued 1000 debenture bonds 3 years ago ...
- finance - A manufacturing company issues a bond with a 100,000 face value and a ...
- Math... please help me - Please can you help me to solve and get the solution ...
- MS.SUE PLS HELP ME - Please can you help me to solve and get the solution for ...
- math..please i need your help - Please can you help me to solve and get the ...
- Pre-Calculus - What is the present value of a $1000 bond which pays $50 a year ...
- accounting - a 10 year bond pays 8% on a face value of $1000. If similar bonds ...
- accounting - a 15 year bond pays 11% on a face value of $1000. If similar bonds ...
- macro ec - does anyone know how rising inflation rates would effect the price of...

More Related Questions