Barry Cuda is considering the purchase of the following Builtrite bond: $1000 par, 3 1/4% coupon rate, 10 year maturity that is currently selling for $940. If Barry purchases this bond, what would his approximate yield to maturity be?

Yield to Maturity = 3.97%

Explanation:

The yield to maturity is the discount rate that equates the price of the bond to the present value of its future cash flow receivable from it.

The yield on the bond can be determined as follows using the formula below:  

YM = C + F-P/n) ÷ 1/2 (F+P)  

YM-Yield to maturity-  

C- annual coupon  

F- Face Value  

P- Current Price  

DATA  

Coupon = coupon rate × Nominal value = 1,000 × 3 1/4%=  32.5

Face Value = 1000

YM-?, C- 32.5, Face Value - 1,000, P-940  

YM = (32.5+ (1000-940)/10) ÷ ( 1/2× (1000 + 940) )  

YM = 0.0397 × 100 =  3.97%

Yield to Maturity = 3.97%

the assumption the narrator makes in this excerpt is that the messages he heards were going to hurt the narrator's mom; the narrator just springs in to action. the narrator doesn't specify in this excerpt why he believes that the messages present a problem that requires protection.

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )