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5) a) Fill in the blanks in the chart below for an exact asset matching using the indicated coupon bonds. Bond Term Coupon Rate Yield
5) a) Fill in the blanks in the chart below for an exact asset matching using the indicated coupon bonds. Bond Term Coupon Rate Yield Rate Liability Amount Needed Cost Coupon Payment A 1 4.000% 7.000% $4,000.00 B 2 5.000% 4.500% $5,000.00 $4,492.36 $4,534.43 3 6.000% 7.000% $5,000.00 $4,716.98 $4,593.19 $283.02 D 4 4.500% 4.000% S- $- S- $- b) What is the cost of this project? c) What is the yield rate for this project? 5) a) Fill in the blanks in the chart below for an exact asset matching using the indicated coupon bonds. Bond Term Coupon Rate Yield Rate Liability Amount Needed Cost Coupon Payment A 1 4.000% 7.000% $4,000.00 B 2 5.000% 4.500% $5,000.00 $4,492.36 $4,534.43 3 6.000% 7.000% $5,000.00 $4,716.98 $4,593.19 $283.02 D 4 4.500% 4.000% S- $- S- $- b) What is the cost of this project? c) What is the yield rate for this project
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