What is the ytm

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1) You have just been offered a job. Your base salary will be $90,000 per year and the first year's annual salary will be received one year from the day you start working. You receive a bonus immediately of $12,500. Your salary will grow 4 percent per year and you will receive a bonus of 10 percent of your salary. You expect to work 30 years. Your discount rate is 11 percent. What is the present value of your offer?

2) ABC Inc. has 5.0 percent coupon bonds on the market with 9 years to maturity. The bonds make semi-annual payments and currently sell for 110 percent of par. What is the YTM?

Reference no: EM132444193

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