The Pennington Corporation issued a new series of bonds on January 1, 1985. The bonds were sold at par ($1,000); had a 12% coupon; and mature in 30 years, on December 31, 2014. Coupon payments are made semiannually (on June 30 and December 31). a. What was the YTM on January 1, 1985?

The YTM on January 1, 1985 was 6.00%.

Explanation:

The YTM is the interest rate used to determine the Present Value of Coupons and Principle and can be found as follows :

PV = $1,000

Pmt = ($1,000 × 12 %) / 2 = - $60

P/yr = 1

n = 30 × 2 = 60

Fv = - $1,000

YTM = ?

Using a Financial Calculator, the YTM is 6.00%

Therefore, the YTM on January 1, 1985 was 6.00%.

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it