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PLEASE USE IRR TO SOLVE PART B ANSWERS 11.06 AND 12.84 ARE WRONG. IT IS A TRICK QUESTION AND USES IRR TO ANSWER I DO KNO

Posted: Mon Apr 25, 2022 8:42 am
by answerhappygod
PLEASE USE IRR TO SOLVE PART B ANSWERS 11.06 AND 12.84 ARE
WRONG. IT IS A TRICK QUESTION AND USES IRR TO ANSWER I DO KNOW
THAT. PLEASE HELP!
Please Use Irr To Solve Part B Answers 11 06 And 12 84 Are Wrong It Is A Trick Question And Uses Irr To Answer I Do Kno 1
Please Use Irr To Solve Part B Answers 11 06 And 12 84 Are Wrong It Is A Trick Question And Uses Irr To Answer I Do Kno 1 (38.36 KiB) Viewed 27 times
Problem 23-1 Expected yield You own a bond with an annual coupon rate of 5% maturing in two years and priced at 86%. Suppose that there is a 8% chance that at maturity the bond will default and you will receive only 44% of the promised payment. Assume a face value of $1,000. a. What is the bond's promised yield to maturity? (Enter your answer as a percent rounded to 2 decimal places.) Answer is complete and correct. Promised yield 13.44 % b. What is its expected yield (i.e., the possible yields weighted by their probabilities)? (Enter your answer as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. Expected yield 12.84 %