a If the interest rate is 7 , what is the present value of a security that pays you $850 next year and $1212 50 three years from now b If this security sold for $1700, is the yield to maturity greater or less than 7 Illustrate your answer by estimating a range of the yield to maturity using trial a...

Yield To Maturity is the amount of final yield expected in return on a bond or portfoli ...

a. If the interest rate is 7%, what is the present value of a security that pays

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a. If the interest rate is 7%, what is the present value of a security that pays you $850 next year and $1212.50 three years from now?
b. If this security sold for $1700, is the yield to maturity greater or less than 7%? Illustrate your answer by estimating a range of the yield to maturity using trial and error method (provide at least two iterations).

Posted Date: Oct 11, 2021 04:05 AM

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a. If the interest rate is 7%, what is the present value of a security that pays

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