Start with the partial model in the file Ch05 P24 Build a Model.xls on the textbook'sWeb site. A 20-year, 8% semiannual coupon bond with a par value of $1,000 may becalled in 5 years at a call price of $1,040. The bond sells for $1,100. (Assume that thebond has just been issued.)

a. What is the bond's yield to maturity?
b. What is the bond's current yield?
c. What is the bond's capital gain or loss yield?
d. What is the bond's yield to call?
e. How would the price of the bond be affected by a change in the going marketinterest rate?
f. Now assume the date is October 25, 2010. Assume further that a 12%, 10-yearbond was issued on July 1, 2010, pays interest semiannually (on January 1 andJuly 1), and sells for $1,100. Use your spreadsheet to find the bond's yield.