Non-Calculator Percentages Exam Questions

To solve for the rate of return using the YTM method, find the discount rate that makes the original price equal to the present value of the bond’s cash flows: 975 = 80 × annuity factor( YTM, 5 years ) + 1000/(1 + YTM)5 Using the calculator, enter PV = (-)975, n = 5, PMT = 80, FV = 1000 and compute i. ................
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