2.

A 25-year, 8.3500% semi-annual bond with a PAR value of $1,000

is currently selling for $1360with a YTM of 5.6452% NOTE: No calculation required, this is the YTM for the bond

The bond could be called after NINE (9) years

for a CALL price of $1055

Use the DATA to calculate

CALCULATE: YTC (Yield to CALL)

COMPLETE: Call Decision (yes or no) choice

3.

Determinants of Interest Rates

Using the following DATA:

R*= 2.9500%

I₁ = 5.0000%

I₂ = 4.0000%

I₃ = 3.0000%

I₄₌ 2.0000%

MRP = .60% ( t - 1) (NOTE: This is a PERCENTAGE, not a DECIMAL MRP!) t = number of years to maturity

DRP = 8.4000%

LP = 3.2500%

Use the DATA to calculate:

5 year TREASURY BOND RATE

8 year CORPORATE BOND RATE

I need the n, I, FV, PMT, and PV for each question

N =

I% =

FV =

PMT =

PV =