document.write( "Question 1179442: A Php 100,000, 10% bond, pays a dividend every quarter for 8 years. The bond is priced at par and is redeemable at 110% of the par value. Find the yield to maturity. \n" ); document.write( "
Algebra.Com's Answer #809131 by mananth(16946)\"\" \"About 
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A Php 100,000, 10% bond, pays a dividend every quarter for 8 years. The bond is priced at par and is redeemable at 110% of the par value. Find the yield to maturity.\r
\n" ); document.write( "\n" ); document.write( "Principal P = 100000
\n" ); document.write( "Amount= A
\n" ); document.write( "years=t 8.00
\n" ); document.write( "compounded 4 times a year n
\n" ); document.write( "Rate = 10.00 0.1 0.025
\n" ); document.write( "Amount = P*((n+r)/n)^n*t
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\n" ); document.write( "Amount = = 100000 *( 1 + 0.025 )^ 4 * 8.00
\n" ); document.write( "Amount = 100000 *( 1 + 0.025 )^ 32
\n" ); document.write( " 100000 *( 1.025 )^ 32
\n" ); document.write( "Amount = 220375.69
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\n" ); document.write( "Interest = 220375.69 -100000 =$120,375.69 \r
\n" ); document.write( "\n" ); document.write( "120,375.60+10,000 =130,375.69 \r
\n" ); document.write( "\n" ); document.write( "(130375.69/220375.69)*100 = 59.16%\r
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