1:35 .LTE Ch05 P24 Build a Model.xlsx Aye. Samim topon bond win a perhe.00 may be called in years at cut price of $1.000 The hond ills for 1,180 Avime that the band has just been ied) Bastetut Years mar Paris per Posto Coupon Parva IN 51.300 What is de band's yield to matury Peridedi YTM Arad Nominal YTM Hurt This is a nominal rate, or the effective ownes really want What is the band's current yield? Current Current yield Currentiel Hinta formularin word Hint. Cal shoulder to input Section AN What is the band's capital gain or lose yel? Cap Gainios yield Met Wateformen Cap Gainlose yuld Mat Cedomis shoulder to put Section Cap Gains A) Nude that this seconomic loss niet als for the pureses What is the band's to cal? Here we can use the Ratuncion, but with data related to the cal Periodic TTC Amed mina YTCO The amontinal rate not the effective rote No only. The YTC tower than me YTM Because the ton called. The buyer willow the Gorence between the call price and the current price in yours in this wout much of the interest income Note to that the bond in holy to be called and reload hance that the YC will probably be and NOW ANSWER THE FOLLOWING NEW QUESTIONS How would the price of the bond be attested by changing the poing market interest rate? Contact sensativity analysis of rise to changes in the going market wrest rate for the band. Assume that the band will be called it and only the poing rate of interest is below the cooperate That is an evenimo, tu wyway for purposes of this problem Nominal market rate, Value of bond if it's not called Value of bond is called The bont would not be caled to recoupon We can use the valuation for den tindahan under diferents, maputi, and annat statement to determine which is approprio Value Band Actual value Net caled Gied considering Mater 1960 call hood 21 49 09 SEN 1. Now assume the date is 10/25/2019. Assume further that a 12%, 10-year bond was issued on 7/1/2019, pays interest semiannually (January 1 and July 1), and sells for $1,100. Use your spreadsheet to find the bond's yield. Refer to this chapter's Tool Kit for information about how to use Excel's bond valuation functions. The model finds the price of a bond, but the procedures for finding the yield are similar. Begin by setting up the input data as shown below: Basic info: Call date Settlement (today) Maturity Coupon rate Current price% of par) Redemption (% of par value) Frequency (for semiannual) Basis (360 of 365 day year) Call price 1 Yield to Maturity: Hint: Use the Yield function. For dates, either refer to cells D122 and D123, or enter the date in quotes, such as "10/25/2014". To find the yield to call, use the YIELD function, but with the call price rather than par value as the redemption Yield to call: You could also use Excel's "Price" function to find the value of a bond between interest payment dates. 1:35 .LTE Ch05 P24 Build a Model.xlsx Aye. Samim topon bond win a perhe.00 may be called in years at cut price of $1.000 The hond ills for 1,180 Avime that the band has just been ied) Bastetut Years mar Paris per Posto Coupon Parva IN 51.300 What is de band's yield to matury Peridedi YTM Arad Nominal YTM Hurt This is a nominal rate, or the effective ownes really want What is the band's current yield? Current Current yield Currentiel Hinta formularin word Hint. Cal shoulder to input Section AN What is the band's capital gain or lose yel? Cap Gainios yield Met Wateformen Cap Gainlose yuld Mat Cedomis shoulder to put Section Cap Gains A) Nude that this seconomic loss niet als for the pureses What is the band's to cal? Here we can use the Ratuncion, but with data related to the cal Periodic TTC Amed mina YTCO The amontinal rate not the effective rote No only. The YTC tower than me YTM Because the ton called. The buyer willow the Gorence between the call price and the current price in yours in this wout much of the interest income Note to that the bond in holy to be called and reload hance that the YC will probably be and NOW ANSWER THE FOLLOWING NEW QUESTIONS How would the price of the bond be attested by changing the poing market interest rate? Contact sensativity analysis of rise to changes in the going market wrest rate for the band. Assume that the band will be called it and only the poing rate of interest is below the cooperate That is an evenimo, tu wyway for purposes of this problem Nominal market rate, Value of bond if it's not called Value of bond is called The bont would not be caled to recoupon We can use the valuation for den tindahan under diferents, maputi, and annat statement to determine which is approprio Value Band Actual value Net caled Gied considering Mater 1960 call hood 21 49 09 SEN 1. Now assume the date is 10/25/2019. Assume further that a 12%, 10-year bond was issued on 7/1/2019, pays interest semiannually (January 1 and July 1), and sells for $1,100. Use your spreadsheet to find the bond's yield. Refer to this chapter's Tool Kit for information about how to use Excel's bond valuation functions. The model finds the price of a bond, but the procedures for finding the yield are similar. Begin by setting up the input data as shown below: Basic info: Call date Settlement (today) Maturity Coupon rate Current price% of par) Redemption (% of par value) Frequency (for semiannual) Basis (360 of 365 day year) Call price 1 Yield to Maturity: Hint: Use the Yield function. For dates, either refer to cells D122 and D123, or enter the date in quotes, such as "10/25/2014". To find the yield to call, use the YIELD function, but with the call price rather than par value as the redemption Yield to call: You could also use Excel's "Price" function to find the value of a bond between interest payment dates