What is the yield to maturity on the bond

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1) Dan is considering the purchase of Super technology, Inc. bonds that were issued 3 years ago. When the bond were originally sold they had a 25-year maturity and a 6.35 percent coupon interest rate, paid annually. The bond is currently selling for $1,317. Par value of the bond is $1,000. What is the yield to maturity on the bond if you purchased the bond today?

Round the answer to two decimal places in percentage form.

You should use excel or Financial calculator.

2) Find the profitability index (PI) for the following Series of future cash flows, assuming the company's cost of capital is 8.10 percent. The initial outlay is $318,916.

Year 1: $186,520

Year 2: $167,264

Year 3: $122,642

Year 4: $162,944

Year 5: $167,400

Round the answer to two decimal places.

Reference no: EM132666257

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