Please show work What is the yield to maturity of a 23 year bond that pays a cou
ID: 2639419 • Letter: P
Question
Please show work
What is the yield to maturity of a 23 year bond that pays a coupon rate of 8.25% per year and has $1,000 par value and is currently priced at $1,298.05. Assume semi-annual coupon payments. Round the answer to two decimal places in percentage form.
Dan is going to buy a 19 year bond that pays a coupon rate of 11.56% per year and has a $1,000 par value. The bond currently priced at $1,326.92. What is the yield to maturity of this bond? Assume annual coupon payments. Round the answer to two decimal places in percentage form.
Try to determine the required rate of return on Mary Farm Corporation common stock. The firm
Explanation / Answer
Half Year Amounts Cell Year Cell 0 -1298.05 A1 0 -1326.92 A1 1 41.25 A2 1 115.6 A2 2 41.25 A3 2 115.6 A3 3 41.25 A4 3 115.6 A4 4 41.25 A5 4 115.6 A5 5 41.25 A6 5 115.6 A6 6 41.25 A7 6 115.6 A7 7 41.25 A8 7 115.6 A8 8 41.25 A9 8 115.6 A9 9 41.25 A10 9 115.6 A10 10 41.25 A11 10 115.6 A11 11 41.25 A12 11 115.6 A12 12 41.25 A13 12 115.6 A13 13 41.25 A14 13 115.6 A14 14 41.25 A15 14 115.6 A15 15 41.25 A16 15 115.6 A16 16 41.25 A17 16 115.6 A17 17 41.25 A18 17 115.6 A18 18 41.25 A19 18 115.6 A19 19 41.25 A20 19 115.6 A20 20 41.25 A21 19 1000 A21 21 41.25 A22 Yield=IRR(A1:A19,0.01) 8% 22 41.25 A23 23 41.25 A24 24 41.25 A25 25 41.25 A26 26 41.25 A27 27 41.25 A28 28 41.25 A29 29 41.25 A30 30 41.25 A31 31 41.25 A32 32 41.25 A33 33 41.25 A34 34 41.25 A35 35 41.25 A36 36 41.25 A37 37 41.25 A38 38 41.25 A39 39 41.25 A40 40 41.25 A41 41 41.25 A42 42 41.25 A43 43 41.25 A44 44 41.25 A45 45 41.25 A46 46 41.25 A47 46 1000 A48 Yield='IRR(A1:A48,0.01) 3% 3>Required Rate of Return=RF Rate +Beta*(Market Rate-RF Rate)=2.38+1.6*(8.06-2.38) 11.47 4>Beta(Portfolio)=0.23*1.5+0.48*1.32+0.29*1.87 1.52