Parkway Void Co. issued 15-year bonds two years ago at a coupon rate of 9.4 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?

4.42% semiannually OR 8.84% annually

Explanation:

The actual return that an investor earn on a bond until its maturity is called the Yield to maturity. It is a long term return which is expressed in annual rate.

According to given data

Assuming the Face value of the Bond is $1,000

Coupon Payment = C = $1,000 x 9.4% = $94 annually = $47 semiannually

Price of the Bond = P = $1,000 x 105% = $1,050

Numbers of period = n = 15 years x 2 = 30 periods

Use Following Formula to calculate YTM

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $47 + ( $1,000 - $1,050 ) / 30 ] / [ ($1,000 + $1,050 ) / 2 ]

Yield to maturity = $45.33 / $1,025 = 0.0442

Yield to maturity = 4.42% semiannually OR 8.84% annually

CL.1.142):

A):      

x5 ==>      4 boxes  =   3ft   < x5

20 boxes   =       ?  ft

20 boxes  is    15 ft. high

B):   x3  ===>   4 boxes     =    3ft.  < x3

   ?   boxes           =          9ft.

       12 boxes  will fit in one stack.

c):  CL.143

 Perimeter  =     15  +  29  +  9  +  11  +  6  +  18   >  88m

A1    =    b  *   h

(18)(15)  

270m^2

A2    =   b  *  h

(11)(9)

99

Total  Area >   270    +    99   >  369m^2

CL.1-144

1/4    +   1/4   +   1/5     =    5/20    +   5/20   +   4/20    >    14/20

1/4  *    5/5  >  5/20

1/5   *    4/4    >  4/20

14/20      +      ?/20       =      20/20

?      =       6  Missing    Section

6/20      >     3/10

CL-1.145

A):   40/100       =     4/10   >   2/5

0.4            >    40%

B):    1/6  >   .00000

0.16 (Repeating 6)  >  16.6%

C):   37.5/100     =    375/1000     >     3/8

0.375      >   37.5%

CL-1.146

ADD:   1/6   +   1/2   show all steps:

1/6   +   1/2

1/6    +    3/6

1   +   3 / 6

4/6  >    2/3     >   Decimal:   >   0.666667

Hope that helps                                   : )