Question
5. (a) Explain briefly how you would price the following German government bond: it has a coupon of 1.4% payable annually, has a term to
5. (a) Explain briefly how you would price the following German government bond: it has a coupon of 1.4% payable annually, has a term to maturity of 6 years, and currently yields 1.7%. What Excel formula would you use to calculate the bonds price?
(b) What would happen to the bonds YTM if (i) the coupon rate were lower and (ii) the bonds price were lower? Explain your answers.
(c) Explain the advantages of using the XIRR function rather than the IRR function for calculating a bonds yield to maturity. Write out the standard format of the XIRR function
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Machine Learning In Finance From Theory To Practice
Authors: Matthew F Dixon, Igor Halperin, Paul Bilokon
1st Edition
3030410676, 978-3030410674
