"BOND, PURCHASE PRICE on INTEREST DATE, YIELD RATE. A BOND is a written contract to pay a fixed sum called the REDEMPTION VALUE on afuture specified date called the REDEMPTION DATE. ACEVALU is bond's face value.FACRATE% is its nominal or face interest rate. INVRATE% is the investor's desired interest (yield) rate. NUMYEARS is the term of the bond in years from purchase date. PAYMNINT is the payment interval in months (=1 for month, =3 for quarter, =6 for semiannully, =12 for annually). REDMVALU is bond's redemption value in dollars (not as percent of face value.) PERPAYMN is the periodic interest payment. PURPRICE is the purchase price. PREMIUM is the amount paid over redemption value and DISCOUNT is amount paid less than redemption value. *** Answers to problem *** Note JJ (Jan./July.) is semiannual payment periods.(a) Set FACEVALU=10,000, FCERATE%=12, INVRATE%=1, NUMYEARS=24.5, PAYMNINT=6 (6 = semiannual), REDMVALU=11,000. Move cursor to INVRATE%. Type s. Type (esc) PURPRICE (ent). Type (esc) 12,500 (ent). For range, type (ent). The investor's or yield rate is 9.45%. Type any key to exit. ||(a) A $10,000, 12%, JJ bond redeemable at 110 ($11,000) on July 1, 2017 is quoted on Jan. 1, 1992 at 125 ($12,500). What is the yield rate if purchased on that date? Type , to see answers. Type (F2) to return to helpfile. ''(c) Copyright PCSCC, Inc., 1993"
