Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
The interest rate offered on the bond is 11.94%.
What is the interest rate on the bond?
The interest rate of the bond can be determined by calculating the yield to maturity of the bond. The yield to maturity is the interest rate that equates the price of the bond to the future value of the bond.
The yield to maturity can be determined using a financial calculator:
- Cash flow in year 0 = $-134
- Cash flow in year 1 = $150
YTM = 11.94%
To learn more about yield to maturity, please check: https://brainly.com/question/26376004
We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.
