To compute an interquartile range using this definition, first remove observations from the lower quartile. Then, remove observations from the upper quartile. Then, from the remaining observations, compute the difference between the largest and smallest values.
Know the meaning of the carrying value. The carrying value is a calculation performed by the bond issuer, or the company that sold the bond, in order to accurately record the value of the bond discount or premium on financial statements. The discount or premium is amortized, or spread out, over the term of the bond.
Because the yield to maturity (10%) is higher than the coupon rate (9%), this bond will be sold at a discount. Therefore, its carrying value will be less than its face value ($100,000). You can calculate the carrying value of the bond by typing in the relevant pieces of information into a finance calculator or spreadsheet (use the PV function). FV = $100,000 (par value) N = 3 (number of periods) PMT = $9,000 (9% coupon rate X $100,000 par value) INT = 10% (Investors required yield to maturity)