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A) An annuity with a price of $200,000, a term of eight years, and an annual payment of $37,500. Find the yield to the nearest tenth of a percent. B) A coupon bond with a price of $50,000, a term of ten years, a face value of $65,000 and a coupon rate of 4 percent. Find the yield to the nearest hundredth of a percent. C) A bond which has a price of $50,000. It returned a payment of $35,000 after two years, a payment of $40,000 after five years, and a (final) payment of $25,000 after ten years. Find the yield to the nearest tenth of a percent.

A) An annuity with a price of $200,000, a term of eight years, and an annual payment of $37,500. Find the yield to the nearest tenth of a percent. B) A coupon bond with a price of $50,000, a term of ten years, a face value of $65,000 and a coupon rate of 4 percent. Find the yield to the nearest hundredth of a percent. C) A bond which has a price of $50,000. It returned a payment of $35,000 after two years, a payment of $40,000 after five years, and a (final) payment of $25,000 after ten years. Find the yield to the nearest tenth of a percent.

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 8P
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A) An annuity with a price of $200,000, a term of eight years, and an annual payment of $37,500. Find the yield to the nearest tenth of a percent. B) A coupon bond with a price of $50,000, a term of ten years, a face value of $65,000 and a coupon rate of 4 percent. Find the yield to the nearest hundredth of a percent. C) A bond which has a price of $50,000. It returned a payment of $35,000 after two years, a payment of $40,000 after five years, and a (final) payment of $25,000 after ten years. Find the yield to the nearest tenth of a percent.
Transcribed Image Text:A) An annuity with a price of $200,000, a term of eight years, and an annual payment of $37,500. Find the yield to the nearest tenth of a percent. B) A coupon bond with a price of $50,000, a term of ten years, a face value of $65,000 and a coupon rate of 4 percent. Find the yield to the nearest hundredth of a percent. C) A bond which has a price of $50,000. It returned a payment of $35,000 after two years, a payment of $40,000 after five years, and a (final) payment of $25,000 after ten years. Find the yield to the nearest tenth of a percent.
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