New Homes has a bond issue with a coupon rate of 5.5 percent that matures in 8.5 years. The bonds have a par value of $1,000 and a market price of $1,022. Interest is paid semiannually. What is the yield to maturity?

5.18%

Explanation:

Given:

As we know that, yield to maturity has the formula is:

YMT =  [C + (F-P/n) ] / (F+ P) / 2

= [55 + (1000 - 1022)/8.5] / (1000+1022)/2

= (55- ) / 1011

= 0.0518

= 5.18%

Hope it will find you well

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.