May Industries has a bond outstanding that sells for $931. The bond has a coupon rate of 7.8 percent and 14 years until maturity. What is the yield to maturity of the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 10-year annuity is $1.5 million and the annuity earns a guaranteed annual return of 12 percent. The payments are to begin at the end of the current year. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
Annual cash flows $
b. Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 10-year annuity is $1.5 million and the annuity earns a guaranteed annual return of 12 percent. The payments are to begin at the end of five years. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
Annual cash flows $
c. What is the amount of the annuity purchase required if you wish to receive a fixed payment of $240,000 for 10 years? Assume that the annuity will earn 12 percent per year. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
Present value $