XYZ Corporation’s bonds have 14 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $950. What is their yield to maturity? Show your work.

The answer is 10.71%

Explanation:

N(Number of periods) = 14 years

I/Y(Yield to maturity) = ?

PV(present value or market price) = $950

PMT( coupon payment) = $100 ( 10 percent x $1,000)

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 14; PV= -950 ; PMT = 100; FV= $1,000; CPT I/Y= 10.71

Therefore, the yield to maturity of the bond is 10.71%

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer: technology

hope i

-lavira: )