Explore BrainMass

Explore BrainMass

    Calculating PV, current yield, beta and YTM as per details

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1. Determine how much you would be willing to pay for an Annuity Due that has the following characteristics: (a) PMT: $5,500, (b) RATE: 8%, and (c) NPER: 15.

    2. What is the current yield on a bond that has the following characteristics: (a) Price: $1,055, (b) Coupon Rate: 5%, (c) YTM: 4.6%, and (d) NPER: 22.

    3. What is the Beta for XYZ Company, given the following information: (a) Expected Return on Company XYZ's Stock: 9%, (b) Expected Return on the Risk Free Asset: 3%, and (c) Expected Rate of Return on the Market: 9.5%.

    4. Calculate the YTM on a bond with the following characteristics: (a) Price: $884, (b) Coupon: $50.00, and (c) NPER: 24.

    © BrainMass Inc. brainmass.com October 2, 2022, 4:51 am ad1c9bdddf
    https://brainmass.com/statistics/central-tendency/calculating-pv-current-yield-beta-and-ytm-as-per-details-518517

    Solution Preview

    Please refer attached file for complete solution.

    1. Determine how much you would be willing to pay for an Annuity Due that has the following characteristics: (a) PMT: $5,500, (b) RATE: 8%, and (c) NPER: 15. 

    PMT=$5,500
    RATE=8%
    NPER=15
    Type=1 annuity due
    FV=0
    Price can be found by using PV function in MS ...

    Solution Summary

    There are 4 basic problems. Solutions to these problems depict the methodology to determine PV, YTM, current yield and beta. PV and YTM are calculated by using the built-in functions in MS Excel.

    $2.49

    ADVERTISEMENT