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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 QUESTION 12(5 POINTS) Today, you
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 QUESTION 12(5 POINTS) Today, you purchase the following bonds. These are annual coupon bonds with $1000 par value. Years to Maturity 15 15 Bond A Bond B Coupon rate 9.00% 5.00% What is the price of the bond? Bond A Bond B YTM Note: do not use hard value. Must use formulas and/or cell referencing. You will not get credit if you do not show your work within the cells What is the current yield? Bond A Bond B 7.00% 7.00% Is this a discount, premium, or a par value bond? If the interest rates remain unchanged, what is the price of the bonds in 1 year? Bond A Bond B
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