Can someone please explain how to do these on a financial calculator? I have my

Question

Can someone please explain how to do these on a financial calculator? I have my final tomorrow.

Question 6 1 pts A bond with a par value of $1,000 and a coupon rate of 7.25% has a current market value of $1,030. What is its yield to maturity? The bond has 8 years to maturity. O 7.24% O 6.85% o 7.13% o 6.75% O 6.19% Question7 1 pts Conor Airlines Inc. recently issued $75 par value preferred stock that pays an 8.25% dividend rate per year. If the stock is currently selling for $60, what is the expected return of this preferred stock? 0 10.21% O 10.76% O 10.31% O 10.47% O 11.34%

Explanation / Answer

6) Insert N = 8, PV = - 1030, PMT = 7.25% x 1000 = 72.5, FV = 1000

=> Compute I/Y = 6.75% is YTM

7) Expected Returns = Dividend / Price = 75 x 8.25% / 60 = 10.31%

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