Why is my BA ii plus calculator rejecting the return on this bond? I get "error 5." I supposed to = 3%. Essentials of Investments Bodie,Kane and Marcus Chapter 10 example. N = 60 PMT = 40 PV= $1,276.76 FV= 1000
Why is my BA ii plus calculator rejecting the return on this bond? I get "error 5." I supposed to = 3%. Essentials of Investments Bodie,Kane and Marcus Chapter 10 example. N = 60 PMT = 40 PV= $1,276.76 FV= 1000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Why is my BA ii plus calculator rejecting the return on this bond? I get "error 5." I supposed to = 3%. Essentials of Investments Bodie,Kane and Marcus Chapter 10 example.
N = 60
PMT = 40
PV= $1,276.76
FV= 1000
Expert Solution
Step 1
A debt instrument that obliges its issuer to pay the par value along with a series of fixed periodic payments to the holder is regarded as a bond. The bond price is the current worth of all the coupons expected in the future along with the par value's current worth. The bond price determination is based on the money's time worth concept. The return that a bondholder earns if the bond is held till its expiration is the bond's maturity yield (YTM).
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