Skolits Corp. issued 15-year bonds 2 years ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If these bonds currently sell for 103 percent of par value, what is the YTM?

6.94%

Explanation:

The yield to maturity can be computed using excel rate function found below:

=rate(nper,pmt,-pv,fv)

nper is the coupons that bond has left to pay i.e 26 semiannual coupons in 13 years

pmt is the semiannual coupon amount i.e $1000*7.3%*6/12=36.5

pv is the current market price i.e 103%*$1000=$1030

fv is the face value of $1000

=rate(26,36.5,-1030,1000)=3.47%

semiannual yield =3.47%

annual yield =3.47% *2=6.94%

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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